On July 1, 2013, Apache Company sold a parcel of undeveloped land to a construction company for $3,100,000. The book value of the land on Apache's books was $1,240,000. Terms of the sale required a down payment of $124,000 and 24 annual payments of $124,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2014. Apache has no significant obligations to perform services after the sale.