Bill and Sally want to sell their personal residence to obtain additional income during retirement. In order to obtain a steady stream of income, they will offer owner financing, and they will want the substantial gain, which will result after their $500,000 capital gains exemption, to be recognized over the life of the seller-financed mortgage. Which of the following is true?

a) The amounts received for personal property (furniture, draperies, home theater, etc.) sold with their residence will be included in the sale price.

b) Only the interest paid by the buyer can be recognized over the period of the installment payments made by the buyer.

c) Form 6252 must be used to report installment sale income (based on gain in excess of the $500,000 exemption) in the year of sale and in later years.

d) Income from the sale and interest income will be reported on Form 6252.