The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense $3,081,000 1,959,000 1,122,000 $867,000 31,500 8,900 19,500 57,000 Total expenses Net income 983,900 $ 138,100