On November 1, 2016, SJLL sold a parcel of land for $6,000,000. They had originally paid $3,600,000 for the land. The terms of the sale called for a $1,000,000 down payment, and the balance in two equal installments payable on November 1, 2017 and November 15, 2018. Disregard interest charges. SJLL has a December 31 year-end.

Work Must Be Shown:

Assuming that SJLL uses the installment sales method, the company would recognize gross profit in 2016 of ________.

A)$1,000,000

B)$0

C)$600,000

D)$400,000

Assuming that SJLL uses the installment sales method, the company would recognize gross profit in 2017 of ________.

A)$2,500,000

B)$1,500,000

C)$1,000,000

D)$0