On December $15,2021,$ Rigsby Sales Co$.$ sold a tract of land that cost $$3,700,000$ for $$5,000,000.$ Rigsby appropriately uses the installment sales method of accounting for this transaction. Terms called for a down payment of $$480,000$ with the balance in two equal annual installments payable on December $15,2022,$ and December $15,2023.$ Ignore interest charges. Rigsby has a December $31$ year$-$end.

At December $31,2022,$ Rigsby would report in its balance sheet:

a$.$

Cost of installment sales $$1,672,400.$

b$.$

Realized gross profit of $$480,000.$

c$.$

Realized gross profit of $$587,600.$

d$.$

Deferred gross profit of $$587,600.$