The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2021 and 2020: 2021 2020 Sales revenue $ 15,000,000 $ 9,600,000 Cost of goods sold 9,200,000 6,000,000 Gross prot 5,800,000 3,600,000 Operating expenses 3,200,000 2,600,000 Operating income 2,600,000 1,000,000 Gain on sale of division 600,000 7 3,200,000 1,000,000 Income tax expense 800,000 250,000 Net income 18 2,400,000 $ 250,000 On October 15, 2021, Jackson entered into a tentative agreement to sell the assets of one of its divisions. The division qualies as a component of an entity as dened by GAAP. The division was sold on December 31, 2021, for $5,000,000. Book value of the division's assets was $4,400,000. The division's contribution to Jackson's operating income beforetax for each year was as follows: 202] $400,000 2020 $300,000 Assume an income tax rate of 25%