On December 15, 2016, Rigsby Sales Co. Sold a tract of land that cost $3,600,000 for $5,000,000. Rigsby appropriately uses the installment sales method of accounting for this transaction. Terms called for a down payment of $440,000 with the balance in two equal installments payable on December 15, 2017, and December 15, 2018. Ignore interest charges. Rigsby has a December 31 year-end.

At December 31, 2017, Rigsby would report in its balance sheet:

A. Realized gross profit of $440,000 B. Deferred gross profit of $638,400 C. Realized gross profit of $638,400 D. Cost of installment sales $1,641,600

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