3) An individual sells a piece of personal property, a work tractor used for 3 years on her farm. The individual used the work tractor 100% for a trade or business. The individual purchased the tractor for $50,000, depreciated it $30,000. The individual sold the tractor for $80,000, payable over 4 years at $20,000 per year at 5% interest. Ignoring the interest, what amount is taxable in year one when the buyer made the first $20,000 payment, plus interest

a. $50,000 capital gains

b. $20,000 capital gains, $30,000 ordinary income

c. $5,000 capital gains, $30,000 ordinary income

d. None of the above