1. 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	$28,600
   Direct operating expenses	27,700	21,300
   Sales	92,600	68,400
   Interest expense			$2,100
   General overhead			19,600
   Income tax			4,400

   The net income for Train Corporation is

   a.$38,000

   b.$87,000

   c.$68,600

   d.$11,900