In the current year, Sunset Corporation (a C corporation) had operating income of $250,000 and operating expenses of $185,000. In addition, Sunset had a $35,000 long-term capital gain, a $60,000 short-term capital loss, and $2,500 tax-exempt interest income. What is Sunset Corporation's taxable income for the year?
1) $100,000
2) $65,000
3) $42,500
4) $40,000
