In 2023, Carrie sold a building used in her business for $640,000. The building originally cost $214,000 in 1979 and $200,000 of accelerated depreciation has been deducted. The straight-line depreciation would have been $175,000. The buyer paid $160,000 cash down in 2023 and agreed to pay $120,000 per year for 4 years plus 6% interest starting in 2024. Her taxable income in 2023 is $235,000, excluding the sale, and she is a single filer. She has no other taxable transactions in 2023.

REQUIREMENT 1: Calculate the installment sale gross profit percentage. (Round % to 2 decimal points)

REQUIREMENT 2: How much income (ignore interest income) related to the installment sale must Carrie report in 2023? What is her 2023 tax liability from this transaction?

REQUIREMENT 3: What is the amount and character of the gain Carrie must report in 2024 related to this installment sale?