Hal, a cash basis taxpayer, sold investment land in 2018 for $200,000. He received $40,000 in the year of sale and $160,000 in 2019. The cost of the land was $80,000. Under the installment method, how much gain must the taxpayer report in 2018?

a. Hal must recognize $24,000 gain in the year of the sale

B. Hal must recognize $36,000 gain in the year of the sale

C. Hal must recognize $60,000 gain in the year of the sale

D. Hal must recognize $21,600 gain in the year of the sale