Biotech sold a patent on a new blood analyzer to Pharma. The sales agreement which was signed on January 1, 2009 requires Pharma to pay Biotech $1 million immediately. In addition, Pharma is required to pay $700,000 each December 31 for 20 years starting with December 31,2009. Pharma and Biotech judge that a 10 percent is an appropriate interest rate for this arrangement.

What is the amount of receivable on Biotech's books on January 1, 2009 immediately after receiving the $1 million down payment?