Charter Corporation, which began business in 2016, appropriately uses the installment sales method of accounting for its installment sales. The following data were obtained for sales made during 2016 and 2017:

	2016			2017
Installment sales	$	360,000		$	350,000
Cost of installment sales		234,000			245,000
Cash collections on installment sales during:
2016		150,000			100,000
2017					120,000

Required:
1.	How much gross profit should Charter recognize in 2016 and 2017 from installment sales?

2.	What should be the balance in the deferred gross profit account at the end of 2016 and 2017?