Answer:
C. $12,000
Explanation:
Income from continuing operation: 72,000
discontinued operation    (70,000)
earthquake loss                (90,000)
total non-operating loss: (160,000)
tax shield of 40%                64,000
net non-operating             (96,000)
adjustment on accounting principle: 60,000
then, we apply tax rate of 40%:      (24,000)
net effect on shift of accounting principle: 36,000
Net income for Maynard:
72,000 - 96,000 + 36,000 = 12,000