Swift Corp., a capital goods manufacturing business that started on January 4, 2019, and operates on a calendar-year basis, uses the installment sales method of profit recognition in accounting for all its sales. The following data were taken from the 2019 and 2020 records.

2019 2020

Installment sales $800,000 $1,000,000

Cost of sales $600,000 $700,000

Cash collections on sales of 2019 $500,000 $300,000

Cash collections on sales of 2020 0 $600,000

Instructions: Using installment sales method

(a) Compute the amount of realized gross profit to be recognized in each year

(b) State where the balance of Unrealized Gross Profit in each year