Entro Co. sold equipment to Pan Co. for $80,000. The equipment had a net book amount of $50,000. The collections were $30,000 in the first year, $32,000 in the next year, and $18,000 in the last year. What is the amount of gross profit for the third year if Entro used the installment-sales accounting method for the transaction?
A.	$11,250
B.	$6,750
C.	$12,000
D.	$30,000
During Year 1, Fan Co.'s trademark was licensed to Ham Corp. for royalties of 15% of net sales of the trademarked items. Returns were estimated to be 2% of gross sales. On signing the licensing agreement, Ham paid Fan $ 90,000 as an advance against future royalty earnings. Gross sales of the trademarked items during the year were $750,000. What amount should Fan report as royalty income for Year 1?
A.	$110,250
B.	$112,500
C.	$111,375
D.	$73,500