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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
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 | $47,900 | $29,000 | |
Direct operating expenses | 26,800 | 22,800 | |
Sales | 99,600 | 66,600 | |
Interest expense | $2,500 | ||
General overhead | 18,400 | ||
Income tax | 4,200 |
The income from operations for the Locomotive Division is
a.$43,800
b.$66,600
c.$37,600
d.$14,800
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