Charlie Moore, owner of Sunland Estate Inc., buys and sells commercial properties. Recently, he sold land for

$$3,110,000$ to the Bramble Group, a developer that plans to build a new shopping mall. In addition to the $$3,110,000$

sales price, Bramble Group agrees to pay Sunland Estate Inc. $1\%$ of the retail sales of the mall for $10$ years. Bramble

estimates that retail sales in a typical mall project is $$1,060,000$ a year. Given the substantial increase in online sales

that are occurring in the retail market, Charlie had originally indicated that he would prefer a higher price for the land

instead of the $1\%$ future$-$sales$-$based arrangement and suggested a price of $$3,385,000.$ However, Bramble would not

agree to those terms.

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

Transaction price