The following ledger balances for the year'send, June 30, 2016, is given. The company sold a production unit during the year. All data are before income tax rate of 40%.

Loss from operations of unit. 20,000 Gain on sale of unit 500,000

Cost of Goods Sold .. 300,000 Interest expense 18,000

Sales returns . 5,000 Dividend income 25,000

Sales revenue 600,000 Selling expenses 87,000

Administrative exp. 125,000

Gain on sale of property 10,000

Common stock, $10 par value 600,000