On January 1, 2008, Barkley Company sold property for $200,000. The sale price will be collected as follows: $100,000 in 2008, $60,000 in 2009, and $40,000 in 2010. The property had cost Barkley $150,000 when it was purchased in 2006.

Instructions
(a) Compute the amount of gross profit realized each year assuming Barkley uses the cost-recovery method.
(b) Compute the amount of gross profit realized each year assuming Barkley uses the installment-sales method.