7) In Year 1, John sold land with a basis of $20,000 for $100,000. He received a $20,000 down payment and the buyer's note for $80,000. In Year 2, he received the first of four annual payments of $20,000 each, plus 10% interest. What is the gain to be reported in Year 1? A None. B $20,000 C$16,000 D $4,000