California 540

Jesse sold her property for $50,000 under an installment agreement. She had no debts on the property at the time of sale. The adjusted basis of the property was $35,000 and the selling expenses totaled $5,000. When gains are recognized in periods subsequent to the year of sale, those gains will be apportioned using what rate? a) 25% b) 30% c) 20% d) 40%