Daryl purchases land in 2014 at a cost of $65,000. In 2018, he sells the land for $100,000.

a. How much gain or loss does Daryl realize on the sale of the land?

b. Assume that the sales contract on the land calls for the buyer to pay Daryl $40,000 at the time of sale and $15,000 per year for the next 4 years with interest on the unpaid balance at 8%. How much income must Daryl recognize in 2018? in 2019?