$****$

Installment Sale

Sold a piece of land $($basis: $$120,000)$ for $$300,000.$ Received a down payment of $$60,000$ and will receive additional payments over $5$ years.

Wages: $$72,000$

Interest and Dividend Income: $$1,500$

Itemized Deductions: $$22,000$

Allowable deduction for self$-$employment tax: None

Calculate:

The total gain on the sale.

The portion of the gain recognized in the current year.

AGI, Taxable Income, and Total Tax Liability for the year of sale.