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	$45,700	$32,000
Direct operating expenses	27,900	20,000
Sales	97,700	69,500
Interest expense			$2,800
General overhead			18,400
Income tax			4,400

The net income for Train Corporation is

a. $41,600

b. $16,000

c. $74,900

d. $89,500