The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2024 and 2023: Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Gain on sale of division Income tax expense Net income 2024 $ 15,400,000 9,400,000 6,000,000 2023 $ 10,000,000 6,200,000 3,800,000 3,360,000 2,760,000 2,640,000 1,040,000 640,000 1,040,000 260,000 3,280,000 820,000 $ 2,460,000 $ 780,000 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 $5,120,000. Book value of the division's assets was $4,480,000. The division's contribution to Jackson's operating income before-tax for each year was as follows: 2024 2023 $ 420,000 $ 320,000 Assume an income tax rate of 25%.