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 installment sales method for revenue recognition. 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 $2021,$ and $$220,000$ in $2022$ associated with those sales. In $2021,$ Lake sold jet skis with a total price of $$1,950,000$ that cost Lake $$1,170,000.$ Lake collected $$650,000$ in $2021,$ $$550,000$ in $2022,$ and $$550,000$ 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 $$340,000.$

b$.$

Installment receivables $($net$)$ of $$660,000.$

c$.$

Deferred gross profit of $$1,620,000.$

d$.$

Installment receivables $($net$)$ of $$890,000.$