In 2010, Lake Would Recognize Realized Gross Profit Of

In 2010, Lake would recognize realized gross profit of:

A) $ 0.
B) $300,000.
C) $310,000.
D) $700,000.2008 sales: Cost = $450,000; $300,000 collected in each year 2008-2010.$300,000 of cost recovered in 2008, the other $150,000 of cost recovered in 2009, so $150,000 of gross profit recognized in 2009, leaving $300,000 recognized in 2010.2009 sales:
Cost = $900,000; $500,000 collected in 2009, $400,000 collected in 2010.$500,000 of cost recovered in 2009, the other $400,000 of cost recovered in 2009, so $0 of gross profit recognized in 2010.Total: $300,000 + $0 = $300,000