On December 15, 2021, Rigsby Sales Co. sold a tract of land that cost $3,200,000 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 annual installments payable on December 15, 2022, and December 15, 2023. Ignore interest charges. Rigsby has a December 31 year-end.

In 2021, Rigsby would recognize realized gross profit of:

Multiple Choice

• $158,400.
• $1,800,000.
• $440,000.
• $0.