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Lexington sells land for $120,000 in exchange for two equal payments of $60,000 per year. Lexingtons original basis was $80,000. How much income will Lexington

Lexington sells land for $120,000 in exchange for two equal payments of $60,000 per year. Lexingtons original basis was $80,000. How much income will Lexington recognize in the first year upon payment of $60,000?

A. $0

B. $13,332

C. $20,000

D. $40,000

E. $60,000

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