On January 1, Year 1, Mr. Shaw, a cash-basis taxpayer, sold land and reported the sale using the installment method of accounting. The net sales 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 in Year 2. Since Mr. Shaw died on July 1, Year 5, the executor of his estate collected the final installment payment plus $5,000 of accrued interest. How much income in respect of a decedent should Mr. Shaws estate include on the Form 1041 for Year 6 (assuming the estate uses a calendar year as its tax year)?

• A.$32,500

• B.$35,000

• C.$5,000

• D.$30,000