The following information is available from the accounting records of Spenser Co. for the year ended December 31, 2016:

Selling, general, and administrative expenses $ 51,000

Accounts payable 85,000

Research and development expenses 37,000

Loss from discontinued operations, net of tax savings of $5,000: 16,000

Provision for income taxes 74,000

Net sales 579,000

Interest expense 64,000

Net cash provided by operations 148,000

Cost of goods sold 272,000

Required:

a. Calculate the operating income for Spenser Co. for the year ended December 31, 2016.

b. Calculate the company's net income for 2016.