4. Which of the following statements regarding installment sales is/are correct? 1. The contract should specify a rate of interest at least equal to the applicable federal rate or it will be imputed. 2. Installment sales tax treatment is automatic unless the taxpayer elects otherwise. 3. Installment sales tax treatment applies to both gains and losses. 4. The taxpayer may use the installment method only if the amount received in the year of sale exceeds 20% of the sales price. 1 and 2 only. d. 1, 2, and 4 only. 3 and 4 only. e. 1,2,3, and 4. 2 and 3 only. a. b. C