On April 7, 2016, the Toy Corporation sold inventory to the Penny Corporation for $600,000, terms of the sale called for a down payment of $100,000 and five annual installments of $100,000 due each April 1, beginning April 7, 2017. Each installment will also include interest on the unpaid balance applying an appropriate interest rate. The inventory cost Toy $180,000. The company uses a perpetual inventory system.

How much is the realized gross profit in 2017 applying the profit deferral method (cost recovery method)?