Use the Following Information for Questions

Multiple Choice

Use the following information for questions:
A corporation sold a tract of land for $525,000 that had originally cost $350,000.The buyer will make three annual payments of: $250,000; $125,000; and $150,000.Ignore interest and use the instalment method.
-The profit to be recognized in year two is:

A) $0
B) $41,667
C) $58,333
D) $175,000