Lake Power Sports sells 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 Lake has little information about the ability to collect these receivables, it uses the installmentsalesmethod for revenue recognition. In $2020,$ Lake began operations and sold jet skis with a total price of $$900,000$ that cost Lake $$450,000.$ Lake collected $$300,000$ in $2020,$ $$300,000$ in $2021,$ and $$300,000$ in $2022$ associated with those sales. In $2021,$ Lake sold jet skis with a total price of $$1,500,000$ that cost Lake $$900,000.$ Lake collected $$500,000$ in $2021,$ $$400,000$ in $2022,$ and $$400,000$ in $2023$ associated with those sales. In $2023,$ Lake also repossessed $$200,000$ of jet skis that were sold in $2021.$ Those jet skis had a fair value of $$75,000$ at the time they were repossessed.

In its December $31,2021,$ balance sheet, Lake would report:

a$.$

Deferred gross profit of $$700,000.$

b$.$

Deferred gross profit of $$1,050,000.$

c$.$

Installment receivables $($net$)$ of $$750,000.$

d$.$

Installment receivables $($net$)$ of $$900,000.$