Lev has owned his commercial property for many years, but he has now decided to sell it. The potential purchaser does not have enough cash to pay the full price of $775,000, so he is asking Lev to accept cash of $475,000 and a note payable of $300,000 with interest at 5% for the balance. The note would be repayable in equal annual amounts of $150,000 on the anniversary of the original closing. Lev has come to you for your advice on the tax consequences of this proposal. Proposed Consideration Cash Note UCC Land. Building Cost $100,000 200,000 $300,000 $ 155,000 Proceeds $550,000 225,000 $775,000 $475,000 $300,000 Lev has owned his commercial property for many years, but he has now decided to sell it. The potential purchaser does not have enough cash to pay the full price of $775,000, so he is asking Lev to accept cash of $475,000 and a note payable of $300,000 with interest at 5% for the balance. The note would be repayable in equal annual amounts of $150,000 on the anniversary of the original closing. Lev has come to you for your advice on the tax consequences of this proposal. Proposed Consideration Cash Note UCC Land. Building Cost $100,000 200,000 $300,000 $ 155,000 Proceeds $550,000 225,000 $775,000 $475,000 $300,000