On July 1, 2013, Delta Company sold some inventory with a value of $100,000 and a cost of $40,000. A cash down payment of $10,000 was made and the balance was payable in four annual instalments of $20,000 and a final payment of $10,000. The purchaser is at arm’s length.

REQUIRED
How much of an inventory sales reserve can the company take in each year covered by the instalment sale? Use a December 31 year-end.