Dan acquired rental property in June 2008 for $370,000 and sold it in October, 2018. $40,000 in straight-line depreciation has been taken on the house. A run-up in housing prices allowed him to sell the house for $575,000. In the year of sale, Dan received $175,000 when the buyer sold some investments, an additional $200,000 when the buyer closed a loan from the bank, and took a $200,000 note from the buyer, payable on the anniversary of the sale date in 10 installments of $20,000 each plus interest on the unpaid balance.

Using the installment method, calculate his taxable gain in the year of sale. **For year 2018**