A. 5,000

B. 10,000

C. 12,500

D. 32,500

ABC, Inc. sold computer equipment on installment basis on October 1, 2021. The cost to the company was P75,000 but the installment sales price was set at P106,250. Terms of payment included the acceptance of a used computer equipment with a trade-in value of P37,500. Cash of P6,250 was paid in addition to the trade-in equipment with the balance to be paid in ten (10) monthly installments due at the end of each month commencing the month of sale. The estimated selling price of the used computer equipment after reconditioning cost of P1,562.50 is P31,250. A 15% gross profit was usual from sale of used equipment. What is the gross profit to be realized from the 2021 collections