Ming Company’s $100,000 income for the quarter ended September 30 included the following after-tax items:

• $20,000 of a $40,000 extraordinary loss, realized on August 15; the other $20,000 was allocated to the fourth quarter of the year.

• A $ 16,000 cumulative effect loss resulting from a change in inventory valuation method made on September 1.

• $12,000 of the $48,000 annual property taxes paid on February 1.

For the quarter ended September 30, the correct amount of net income that Ming should report is LO3

a. $80,000.

b. $88,000.

c. $96,000.

d. $116,000.