On January 1, 2021, George sold a piece of equipment to Fred, an unrelated party, for $100,000. Fred gave George a $10,000 down payment and gave him a note for the balance. The note bears interest at an annual rate of 8% and is due in full (principle and interest) on January 1, 2031. George had fully depreciated the equipment, which had an original cost of $100,000, on the DDB method of depreciation. George used the equipment in his business, which he operates as a single-member LLC and reports his taxable income on the accrual method. Fred operates a similar business and intends to use the equipment in his business. Required 1. Calculate George's gain or loss on sale of the equipment. 2. Calculate the gain and related interest (with respect to this sale only) that George will report on his 2021 tax return. 3. Calculate the gain and related interest (with respect to this sale only) that George will report on his 2022 tax return.