John owns real estate with a fair market value of $1 million in which he has a basis of $250,000. In 2005, John sold the property to his son, Junior, for $1 million, subject to an installment note. Junior must pay the $1 million plus interest over 5 years. The note provides Unless sooner discharged, upon Johns death, all amounts due under this note shall be deemed to be extinguished and treated as paid. In 2014, Junior sells the property for $2 million. What is Juniors gain on the sale of the real estate?

Select one:

a.

$750,000

b.

$1 million

c.

$1,750,000

d.

Cannot be determined