The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2024 and 2023: 2024 2023 Sales revenue $ 15,800,000 $ 10,400,000 Cost of goods sold 9,600,000 6,400,000 Gross profit 6,200,000 4,000,000 Operating expenses 3,520,000 2,920,000 Operating income 2,680,000 1,080,000 Gain on sale of division 680,000 3,360,000 1,080,000 Income tax expense 840,000 270,000 Net income $ 2,520,000 $ 810,000 On October 15, 2024, Jackson entered into a tentative agreement to sell the assets of one of its divisions. The division qualifies as a component of an entity as defined by GAAP. The division was sold on December 31, 2024, for $5,240,000. Book value of the divisions assets was $4,560,000. The division