Assume the total sales price and cost of a property are $2,000,000 and $1,100,000, respectively, so that the total profit to be recognized is $900,000. Th e amount of cash received by the seller as a down payment is $300,000, with the remainder of the sales price to be received over a 10-year period. It has been determined that there is significant doubt about the ability and commitment of the buyer to complete all payments. How much profit will be recognized attributable to the down payment if:

1. The installment method is used?

2. The cost recovery method is used?