Watsontown Yacht Sales has been selling large power cruisers for 25 years. On January 1, 2017, the company had $5,950,000 in inventory (based on a FIFO valuation). While the number of yachts in Watsontown Yacht Sales inventory remained fairly constant throughout 2017, by December 31, 2017, yacht prices were 7% higher than at the start of the year. The company reported cost of goods sold for 2017 of $23,800,000. Use the following links to the present value tables to calculate answers. (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.)

Required: Calculate the amount of realized holding gains in Watsontown Yacht Sales income for 2017.