On 3/1/X1, Greg (a calendar year taxpayer) decides to sell land in an installment sale. Gregs adjusted basis in the land is $72,000. Greg agrees to sell the property for four equal payments of $32,000 one upfront payment and the other three payments to be received on 12/31/X1, 12/31/X2 and 12/31/X3.

Required: Input a $ answer for each required item, but SHOW COMPUTATIONS below the answer for partial points.

1) What amount of gain is realized on the sale in X1?

2) What amount of gain is recognized in X1?

3) What is Greg's basis in the note receivable at the end of X2 (not a typo, X2)?