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	$30,900
Direct operating expenses	26,600	21,900
Sales	97,800	67,600
Interest expense			$2,500
General overhead			18,500
Income tax			4,500

The net income for Train Corporation is

a. $74,800

b. $40,300

c. $88,800

d. $14,800