On January 1, 2010, Walters, Inc $\begin{array}{ll}2010 & \$ 70 \\2011 & 40 \\2012 & 30\end{array}$

Multiple Choice

On January 1, 2010, Walters, Inc.purchased a risky investment for $100.It was decided to use the cost recovery method of revenue recognition.Cash collections on accounts receivable related to the asset were as follows: $\begin{array}{ll}2010 & \$ 70 \\2011 & 40 \\2012 & 30\end{array}$
Which of the following represent the realized gross profit that Walters should recognize for each year?
$\begin{array}{llll}&2010&2011&2012\\\text { I. } & \$ 0 & \$ 10 & \$ 30 \\\text { II. } & \$ 70 & \$ 40 & \$ 30 \\\text { III. } & \$ 0 & \$ 30 & \$ 30 \\\text { IV } & \$ 0 & \$ 110 & \$ 30\end{array}$

A) I
B) II
C) III
D) IV