Al received a parcel of land from his Uncle Ed as a gift. Ed had purchased the land for $400000 in 2015. Al sold the land for $480,000 the day after he got it. The terms of the sale were $50,000 cash, inventory worth 30,000 and a small warehouse with a fair value of $400,000. The cash is to be paid in equal annual installments of $10,000 for 5 years. The inventory will be delivered next year around June The warehouse will be delivered immediately.