Cowden Properties Sold a Condominium to Ms

Multiple Choice

Cowden Properties sold a condominium to Ms.Roberts for $90,000.Cowden originally acquired the condo at a cost of $40,000 and made improvements to the unit totaling $20,000.The contract for sale required Ms.Roberts to pay the $90,000 as follows:
Year 1 - $ 5,000
Year 2 - $10,000
Year 3 - $30,000
Year 4 - $45,000
Refer to the Cowden Properties example.If Cowden uses the installment method, how much cost is recognized as expense in year 3?

A) $10,000
B) $15,000
C) $20,000
D) $25,000
E) $30,000