Pat sells land for $20,000 cash and a $80,000 four-year note with a reasonable interest rate. If her basis in the property is $30,000 and she receives the $20,000 down payment and the first $20,000 payment on the note in the year of sale, how much is Pat’s taxable gain in the year of sale using the installment sales method?

a. $0

b. $40,000

c. $20,000

d. $28,000

e. $70,000