Sandhill Co$.$ bought equipment and immediately leased it to Blue Company on May $1,2025.$ At that time the collectability of the lease payments was not probable. The lease expires on May $1,2026.$ Blue could have bought the equipment from Sandhill for $$6000000$ instead of leasing it$.$ Sandhill's accounting records showed a book value for the equipment on May $1,2025,$ of $$5300000.$ Sandhill's depreciation on the equipment in$-2025$ was $$710000.$ In $2025,$ Blue paid $$1452000$ in rentals to Sandhill for the $8-$month period. Sandhill incurred maintenance and other related costs under the terms of the lease of $$120000$ in $2025.$ After the lease with Blue expires, Sandhill will lease the equipment to another company for two years.

The income before income taxes derived by Sandhill from this lease for the year ended December $31,2025,$ should be

$$ $$1452000.$

$$1300000.$

$$622000.$

$$710000.$