(LO3) Installment Sale Maria sold land she had held for investment on November 3, Year 23 for \(\( \$ \) 535,000\). Her basis in the land was \(\( \$ \) 395,000\), and she incurred selling expenses of \(\( \$ \) 26,750\). Maria agreed to receive the following payments to satisfy the sale:

November 3, Year 23	\(\( \$ \) 35,000)
January 1, Year 24	\(\( \$ \) 100,000)
January 1, Year 25	\(\( \$ \) 100,000)
January 1, Year 26	\(\( \$ \) 300,000)

a. How much recognized gain will Maria report in each year? Create an Excel spreadsheet to develop your solution.

b. How would your answer change if Maria were to receive the following payments? Create an Excel spreadsheet to develop your solution.

November 3, Year 23	\(\( \$ \) 0)
January 1, Year 24	\(\( \$ \) 225,000)
January 1, Year 25	\(\( \$ \) 75,000)
January 1, Year 26	\(\( \$ \) 235,000)