Additional information:

Early in $2023,$ Sandhill changed depreciation methods for its plant assets from the double$-$declining$-$balance to the straight$-$

line method. The affected assets were purchased at the beginning of $2018$ for $$222,000,$ had no residual value, and had useful

lives of $10$ years. Depreciation expense of $$22,200$ is included in the selling and administrative expenses of $$321,900.$

On September $1,2023,$ Sandhill sold one of its segments $($product line$)$ to Best Industries for a gain $($pre$-$tax$)$ of $$610,500.$

During the period January $1$ to August $31,$ the discontinued segment incurred an operating loss $($pre$-$tax$)$ of $$532,800.$ This

loss is not included in any of the numbers shown above.

Included in selling and administrative expenses are credit losses of $$21,090.$ Sandhill bases its credit losses upon a percentage

of sales. In $2021$ and $2022,$ the percentage was $0\mathrm{.}5\%.$ In $2023,$ the percentage was changed to $1\%.$