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	$47,000	$31,200
Direct operating expenses	27,200	21,400
Sales	98,600	66,000
Interest expense			$2,500
General overhead			19,200
Income tax			4,400

The net income for Train Corporation is

a.$86,400

b.$37,800

c.$75,000

d.$11,700