On July, 1, 2013, the Al Sultan group of companies sold inventory to the Slate Corporation for $460,000. Terms of the sale called for a down payment of $ 115,000 and three annual installments of $115,000 due on July 1, beginning July 1, 2014. Each installment will include interest on the unpaid balance applying an appropriate interest rate. The inventory cost Al Sultan group $250,000. The company uses the perpetual inventory system. Compute the amount of gross profit to be recognized in 2015 applying profit deferral method.

Answer: