The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2013 and 2012:

	2013			2012
Sales	$	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