(LO3) Janessa sold a rental apartment building for \(\( \$ \) 1.2\) million that had an adjusted basis of \(\( \$ \) 600,000\). The purchaser agreed to pay her \(\( \$ \) 300,000\) cash now and make three more payments of \(\( \$ \) 300,000\) each, including adequate interest, beginning in January of next year.

a. What amount of gain does Janessa need to report in the current year?

b. Where is the interest income reported?