Bill Amends, owner of Waterway Estate Inc., buys and sells commercial properties. Recently, he sold land for $3,100,000 to the Blackhawk Group, a developer that plans to build a new shopping mall. In addition to the $3,100,000 sales price, Blackhawk Group agrees to pay Waterway Estate Inc. 1% of the retail sales of the mall for 10 years. Blackhawk estimates that retail sales in a typical mall project is $900,000 a year. Given the substantial increase in online sales that are occurring in the retail market, Bill had originally indicated that he would prefer a higher price for the land instead of the 1% royalty arrangement and suggested a price of $3,365,000. However, Blackhawk would not agree to those terms.

What is the transaction price for the land and related royalty payment that Waterway Estate Inc. should record?