In the current year, Randa Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. Item Debit Credit 1. Net sales $ 2,860,000 2. Gain on states condemnation of company property 263,000 3. Cost of goods sold $ 1,459,586 4. Income tax expense 215,000 5. Depreciation expense 250,000