. Lake Power Sports sells jet skis and other powered recreational equipment. C

. Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay 1/3 of the sales price of a jet ski when they initially purchase the
ski and then pay another 1/3 each year for the next two years. Because Lake has little information about collectibility of these receivables they use the
installment method for revenue recognition. In 2012 Lake began operations and sold jet skis with a total price of $870000 that cost Lake $435000. Lake
collected $290000 in 2012 $290000 in 2013 and $290000 in 2014 associated with those sales. In 2013 Lake sold jet skis with a total price of $1590000
that cost Lake $954000. Lake collected $530000 in 2013 $450000 in 2014 and $450000 in 2015 associated with those sales. In 2015 Lake also repossessed
$160000 of jet skis that were sold in 2013. Those jet skis had a fair value of $60000 at the time they were repossessed.
In 2102 Lake would recognize realized gross profit of: a. $0

b. $435000

c. $290000

d. $145000