Tomahawk Exporters, Inc. is the owner of patent #1234. On January 1, Year 1, Tomahawk entered into a patent license agreement with Cherokee Manufacturers, Inc. The agreement calls for an initial lump-sum payment of $100,000 and an ongoing royalty of 5% of the selling price of any product produced under patent #1234. These payments are to be made yearly on January 31 covering all sales made in the previous calendar year. The $100,000 is non-refundable but can be applied against any on-going 5% royalty payments. During Year 1, Cherokee's sales of licensed product amounted to $1,800,000. How much royalty revenue should Tomahawk record in Year 1?