Smith Inc. uses the cost-recovery method to recognize the accounting for its sales. The following data was taken from the 2014 and 2015 records.

2014 2015______

Installment sales $480,000 $620,000

Gross profit as a % of costs 25% 28%

Cash collection on 2012 sales $130,000 $240,000

Cash collection on 2013 sales $0 $160,000

Compute the amount of realized gross profit to be recognized on the income statement, prepared using the cost-recovery method.