1. In the current year, Miller sold land with a basis of $320,000 to Yara for $400,000. Yara paid $100,000 down and agreed to pay $60,000 per year, plus interest, for the next five years, beginning in the second year. Under the installment method, what gain should Miller include in gross income for the year of sale?

1. $20,000
2. $60,000
3. $80,000
4. $100,000