Question: On July 1, 2016, Apache Company sold a parcel of undeveloped land to a construction company for $4,700,000. The book value of the land on Apache's books was $1,880,000. Terms of the sale required a down payment of $470,000 and 9 annual payments of $470,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2017. Apache has no significant obligations to perform services after the sale. How much gross profit will Apache recognize in both 2016 and 2017 applying the installment sales method?