In the current year, Randa Merchandising Incorporated 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. A listing of the major sections of an income statement follows.

Item Debit Credit

$1.$ Net sales $ $2,900,000$

$2.$ Gain on state$$s condemnation of company property $230,000$

$3.$ Cost of goods sold $ $1,480,000$

$4.$ Income tax expense $217,000$

$5.$ Depreciation expense $232,000$

$6.$ Gain on sale of wholesale business segment, net of tax $775,000$

$7.$ Loss from operating wholesale business segment, net of tax $444,000$

$8.$ Loss of assets from meteor strike $640,000$