Thorpe Co.’s income statement for the year ended December 31, 2011, reported net income of $74,100. The auditor raised questions about the following amounts that had been included in net income:

Unrealized loss on decline in market value of noncurrent investments in stock classified as available-for-sale (net of tax) $(5,400)

Gain on early retirement of bonds payable (net of

$11,000 tax effect) 22,000 Adjustment to profits of prior years for errors in depreciation (net of $3,750 tax effect) (7,500)

Loss from fire (net of $7,000 tax effect) (14,000)

The loss from the fire was an infrequent but not unusual occurrence in Thorpe’s line of business. Thorpe’s December 31, 2011 income statement should report net income of

a. $65,000

b. $66,100

c. $81,600

d. $87,000