On July 1, 2016, the Foster Company sold inventory to the Slate Corporation for $490,000. Terms of the sale called for a down payment of $122,500 and three annual installments of $122,500 due on each July 1, beginning July 1, 2017. Each installment also will include interest on the unpaid balance applying an appropriate interest rate. The inventory cost Foster $171,500. The company uses the perpetual inventory system. Required: 1. Compute the amount of gross profit to be recognized from the installment sale in 2016, 2017, 2018, and 2019 if revenue was recognized upon delivery. Ignore interest charges. 2. Compute the amount of gross profit to be recognized from the installment sale in 2016, 2017, 2018, and 2019, applying the installment sales method. Ignore interest charges. 3. Compute the amount of gross profit to be recognized from the installment sale in 2016, 2017, 2018, and 2019, applying the cost recovery method. Ignore interest charges. References eBook & Resources General Journal