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 $46,700       $29,300         Direct operating expenses 26,400       20,400         Sales 98,200       69,700         Interest expense     $2,200       General overhead     19,900       Income tax     4,500       The net income for Train Corporation is a.$73,800 b.$91,900 c.$18,500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 $46,700       $29,300        
Direct operating expenses 26,400       20,400        
Sales 98,200       69,700        
Interest expense     $2,200      
General overhead     19,900      
Income tax     4,500      

The net income for Train Corporation is

a.$73,800
b.$91,900
c.$18,500
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