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Use this information for Train Corporation to answer the question that follow.
The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:
Rails
Locomotive
Division
Division
Corporate
Total
Cost of goods sold
$45,900
$31,900
Direct operating expenses
26,600
20,100
Sales
97,200
69,400
Interest expense
$2,300
General overhead
18,000
Income tax
4,100
The net income for Train Corporation is
a. $17,700
b. $42,100
c. $75,100
d. $88,800
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