In 2019, Penelope Enterprises sold an asset with a $474,000 adjusted book and tax basis for $775,000. Penelope received $100,000 in cash from the buyer and a note (with payments starting in 2020) for the $675,000 What is Penelope book and tax gain in the 2019 under the installment method.

A. Book gain $301,000; tax gain $100,000

B. Book and tax gain $38,839

C. Book gain $301,000; tax gain $38,839

D. None of the above

Correct answer WITH explanation will receive positive rating