Ulrich CoSells an Asset to a Buyer for a Total Sales

Multiple Choice

Ulrich Co.sells an asset to a buyer for a total sales price of $6,000 with a payment schedule of $2,000 in year 1, $2,000 in year 2, and $2,000 in year 3.The cost of the asset is $5,000.Under the cost-recovery-first method, what amount of net profit is recognized in year 3?

A) $2,000
B) $1,000
C) $666.67
D) $333.33
E) $0