Pedro sells investment land on September 1, 2016. Information pertaining to the sale follows:
Adjusted basis...........................$25,000
Selling price................................90,000
Selling expenses............................1,500
Down payment............................12,000
Four installment payments...............15,000
Mortgage assumed by the buyer........18,000
Each installment payment is due on September 1 of 2017, 2018, 2019, and 2020 (ignore interest). Determine the tax consequences in 2016, 2017, 2018, 2019, and 2020.