Floyd, a cash basis taxpayer, has receive an offer to purchase his land. The buyer will either pay him $100,000 at closing or pay $50,000 at closing and $52,000 one year after the closing date. If Floyd recognizes the entire gain in the current year, his marginal tax rate will be 35% (combined federal and state rates) However, if he spreads the gain over the two years, his marginal tax rate on the gain on the gain will only be %25. Floyd does not consider the buyer a credit risk, but realizes that the deferred payment will, in effect, earn only 4% interest ($2,000/$50,%. Floyd believes that he can earn a 10% before-tax rate of return on his after-tax cash. Floyd's adjusted basis for the land is $25,000, the buyer is also a cash basis tax payer, and the short-term Federal rate is 4%. Floyd has asked you to evaluate the two alternatives on an after-tax basis