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 $ $3,076,000$ Cost of goods sold $1,958,000$ Gross profit $1,118,000$ Expenses: Operating expenses $ $866,000$ Depreciation expense $31,000$ Loss on sale of land $8,800$ Interest expense $19,000$ Income tax expense $56,000$ Total expenses $980,800$ Net income $ $137,200$ VIRTUAL GAMING SYSTEMS Balance Sheets December $31$