In the current year, Sparrow sold machinery with a fair market value of $200,000. The machinery's original basis was $190,000 and Sparrow's accumulated depreciation on the machinery was $30,000. Sparrow received $50,000 in the current year and a note paying Sparrow $75,000 a year for two years beginning in next year. What is the amount and character of the gain that Sparrow will recognize in each year that he receives payments?

Realized Gain/Loss
Recognized Gain/Loss year 1
Character of Gain/Loss year 1
Recognized Gain/Loss year 2
Character of Gain/Loss year 2
Realized Gain/Loss year 3
Character of Gain/Loss year 3