Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 Net sales Cost of goods sold Gross profit Expenses: Operating expenses 2025 $3,520,000 2024 $3,046,000 2,482,000 1,952,000 1,038,000 1,094,000 957,000 860,000 Depreciation expense Loss on sale of land 32,000 28,000 0 8,200 Interest expense Total expenses Net income 19,000 16,000 Income tax expense 8,200 49,000 1,016,200 961,200 21,800 132,800