ay, who is not a real estate dealer, sold an apartment house to Polly during the current year (2019). The closing statement for the sale is as follows. Total selling price $190,000 Add: Polly's share of property taxes (six months) paid by Kay 3,000 Less: Kay's 8% mortgage assumed by Polly $55,000 Polly's refundable binder ("earnest money") paid in 2018 1,000 Polly's 8% installment note given to Kay 99,000 Kay's real estate commissions and attorney's fees 8,000 (163,000) Cash paid to Kay at closing $30,000 Cash due from Polly = $30,000 + $8,000 expenses $38,000 During 2019, Kay collected $9,000 in principal on the installment note and $2,000 of interest. Kay's basis in the property was $110,000 [$125,000 $15,000 (depreciation)]. The Federal rate is 6%. Hint: Think carefully about the manner in which the property taxes are handled before you begin your computations. When computing gross profit, round to six decimal places before converting to a percentage. For example: .683483333 would be rounded to .683483 and converted to 68.3483%. When required, round your final answers to the nearest dollar. a. Compute the following. The total gain is $ . The contract price is $ . Payments received in the year of sale total $ . Recognized gain in the year of sale is $ , and the character of such gain is . b. Assume the same circumstances, except that Kay's basis in the property was $35,000. Compute the contract price and payments received in the year of sale. The contract price is $ . Payments received in the year of sale total $ .