On January 1, Year 1, Mr. Kolter, a cash-basis taxpayer, sold an office building and reported the sale using the installment method of accounting. The net sale price was $300,000, and its cost basis was $150,000. The installment agreement called for five equal annual payments (plus accrued interest) due on January 1 beginning one year from the sale date. Since Mr. Kolter died on July 1, Year 5, the executor of his estate collected the final installment payment plus $7,000 of accrued interest. Assuming the estate uses a calendar-end tax year, how much income in respect of a decedent should Mr. Kolter's estate include on the Form 1041 for Year 6?

• A.
• $3,500
• B.
• $30,000
• C.
• $37,000
• D.
• $33,500