On July 1, 2013, Apache Company sold a parcel of undeveloped land to a construction company for $3,000,000. The book value of the land on Apaches books was $1,200,000. Terms of the sale required a down payment of $150,000 and 19 annual payments of $150,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2014. Apache has no significant obligations to perform services after the sale