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Big Bear Company deals in distressed properties and makes high-risk sales. In 2012, the company sold for $250,000 a piece of property that cost $150,000.

Big Bear Company deals in distressed properties and makes high-risk sales. In 2012, the company sold for $250,000 a piece of property that cost $150,000. The cost recovery method was appropriately used. Collections on the sale were: $80,000 in 2012, $120,000 in 2013, and $50,000 in 2014. What is the balance in the deferred gross profit account at the end of 2013?

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