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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 | $45,400 | $30,000 | |
Direct operating expenses | 27,500 | 22,900 | |
Sales | 94,200 | 65,300 | |
Interest expense | $2,800 | ||
General overhead | 18,900 | ||
Income tax | 4,500 |
The income from operations for the Locomotive Division is
a.$42,400
b.$65,300
c.$12,400
d.$35,300
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