Question Content Area

The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:

	Rails Division	Locomotive Division	Corporate Total
Cost of goods sold	$ 47,200		$30,720
Direct operating expenses	27,200		20,040
Sales	108,000		78,000
Interest expense					$ 2,040
General overhead					18,160
Income tax					4,700

The net income for Train Corporation is

a. $60,840

b. $48,390

c. $83,180

d. $35,940