LO.4 A seller and buyer agree that the sales/purchase price for land is $150,000 down and five payments of $50,000 each. In addition, the seller would like the contract to read that the total selling price is $372,600 and that the five payments of $50,000 each include interest at 4%, which is the current Federal intermediate-term rate. The buyer counters that the price should be stated as $360,600, with a 6% stated rate on the five payments of $50,000 each. The land is a capital asset to the seller, and the holding period is four years. Because the total amount received by the seller and the amount paid by the buyer are the same [$150,000 + 5($50,000) = $400,000], why does it matter how the price and interest rate are stated in the contract?