The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2018 Net sales Cost of goods sold $3,016,000 1,946,000 Gross profit 1,070,000 Expenses Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense $854,000 27,000 7,600 13,000 44,000 Total expenses 945,600 Net income $124,400