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Han is an accrual-basis taxpayer who owns a furniture store. The furniture store had the following sales of inventory:
| Year of sale | Installment sales | Gross Profit | Collections in 2021 |
| 2019 | $60,000 | $30,000 | $20,000 |
| 2020 | 100,000 | 50,000 | 30,000 |
| 2021 | 250,000 | 125,000 | 40,000 |
For tax purposes, Han should report gross profit for 2021 of
A) $40,000.
B) $65,000.
C) $90,000.
D) $125,000.
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