Pillsberry Companys income statement for Year 2 follows:

Pillsberry Company's income statementor Year 2 follows Pillsberry Company Income Statement Sales Cost of goods sold 710,000 309,000 Gross margin Selling and administrative expenses 401,000 217,000 Net operating income Gain on sale of equipment 184,000 6,000 Income before taxes Income taxes 190,000 76,000 Net income $ 114,000