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	$47,900	$31,300
   Direct operating expenses	27,000	21,600
   Sales	93,000	69,100
   Interest expense			$2,400
   General overhead			18,100
   Income tax			4,300

   The net income for Train Corporation is

   a.$9,500

   b.$34,300

   c.$82,900