All of the following taxpayers would like to report the sale as an installment sale. Which of the following taxpayers may do so?

1. Jorge, who sold his entire inventory valued at $15,000 to Quentin for $23,000. Quentin intends to pay him back $8,000 per year for the next three years.

2. Rowland, who sold a backhoe to Thomas for $5,000, paid in two annual installments. Rowland paid $6,000 for the equipment when it was new and had fully depreciated it before he sold it.

3. Carolyn, who sold a rental condo for $120,000. She had purchased it for $75,000 and had claimed $25,000 depreciation. Her buyer intends to pay $20,000 per year plus 6% interest for six years.

4. Elena, who sold a plot of land for $52,000. She purchased it for $33,000 and paid $22,000 for improvements. Her buyer intends to pay for the land over five years.