On January $1$ of year $1,$ Nick and Rachel Sutton purchased a parcel of undeveloped land as an investment. The purchase price of the land was $$150,000.$ They paid for the property by making a down payment of $$50,000$ and borrowing $$100,000$ from the bank at an interest rate of $6$ percent per year. At the end of the first year, the Suttons paid $$6,000$ of interest to the bank. During year $1,$ the Sutton's only source of income was salary. On December $31$ of year $2,$ the Suttons paid $$6,000$ of interest to the bank and sold the land for $$210,000.$ They used $$100,000$ of the sale proceeds to pay off the $$100,000$ loan. The Suttons itemize deductions and are subject to a marginal ordinary income tax rate of $32$ percent.