10 Lake Power Sports seis jet skis and other powered recreational equipment Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Loke has little information about the ability to collect these receivables, it uses the cost recovery method to recognize revenue on these instaliment sales. In 2020, Lake began operations and sold jet skis with a total price of $660,000 that cost Lake $330,000. Lake collected $220.000 in 2020, $220,000 in 2025, ond $220,000 in 2022 associated with those sales. In 2021 , Lake sold jet skls with a total price of $1620.000 that cost Lake $972,000. Lake collected $540,000 in 2021 5432,000 in 2022, and $432,000 in 2023 associated with those sales. In 2023, Lake also repossessed $216,000 of jet skis that were sold in 2021. Those jet skis had a fair value of $81.000 at the time they were repossessed In 2022. Loke would recognize realized gross profit of: 010020 Multiple Choice 5220,000 O 5062.000 o 3930.000