I:11-48 Installment Sale. In December, Dan sells unlisted stock with a cost of $14,000 for

$20,000. Dan collects $5,000 down and is scheduled to receive $5,000 per year for three years plus interest at a rate acceptable to the IRS.

a. How much gain must Dan recognize in the year of the sale? Assume Dan uses the installment method to report the gain.

b. The following January, Dan sells the three remaining installments for a total of $13,800.

How much gain or loss must Dan recognize from the sale of the remaining installments?