On July 1, 2020, Diane sold a building for $24,000,000. The building had been acquired in 2015 and its purchase price was $17,500,000. During the period she owned the building, Diane claimed $3,250,000 of depreciation, none of which was subject to recapture under section 1250 as ordinary income (i.e., unrecaptured section 1250 gain). The building, therefore, had an adjusted basis of $14,250,000 at the time of the sale. In connection with the sale, Diane incurred expenses equal to $150,000 in the form of attorney's fees and commissions. At the time of the sale, the building was not encumbered by any liabilities.

The purchaser agreed to pay Diane $4,000,000 at the time of the sale in 2020 and $5,000,000 on July 1 of each of the next four years. The obligation to make these payments was evidenced by notes, each of which bore adequate stated interest. Payments were made to Diane on a timely basis in both 2021 and 2022.

(a) What is the sale price of the building? Explain your answer.

(b) What is Diane's gross profit on the sale of the building? Explain your answer.

(c) What is the amount and character of the gain to be recognized by Diane in 2020? Explain your answer.

(d) What is the amount and character of the gain to be recognized by Diane in 2021? Explain your answer.

(e) What is the amount and character of the gain to be recognized by Diane in 2022? Explain your answer.