5. In 2007, the Damon Company had sales of $600,000; cost of sales of $450,000; interest expense of $16,000; a gain on the sale of a component of $12,000; and an extraordinary loss of $20,000. For its income statement, Damon uses the single-step format and the all-inclusive concept. What was Damon's reported pretax income from continuing operations?

a. $150,000

b. $130,000

c. $114,000

d. $134,000