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 costrecoverymethod to recognize revenue on these installment sales. 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 $2022,$ Lake would recognize realized gross profit of:

a$.$

$$0.$

b$.$

$$300,000.$

c$.$

$$310,000.$

d$.$

$$700,000.$