In 2002, Argo, Co. bought 10 acres of commercial zoned land for $2,000,000. It sold the land to a developer in 2021 for $5,000,000 on July 1, 2021. The developer paid Argo $1,000,000 at the closing of the sale and gave Argo a promissory note and mortgage for the remaining $4,000,000, plus 5% interest, payable annually at the end of each calendar year. The note is due in full on 12/31/2026.

(1)How much profit will Argo report on the sale for 2021, if Argo uses the installment method to account for this sale?

(2) How much interest income will Argo report on its financial statements for FY 2021?

(3)How much profit will Argo report on the sale for 2021, if Argo uses the cost recovery method to account for this sale?