PLEASE HELP

In year 1, Aldo sold investment land with a $61,000 tax basis for $95,000. Payment consisted of $15,000 cash down and the purchaser's note for $80,000. The note is being paid in 10 annual installments of $8,000, beginning in year 2. a. Compute Aldo's recognized gain under the installment sale method in years 1 and 2. b. In year 4, Aldo pledged the note as partial collateral for a $75,000 bank loan. The unpaid principal at date of pledge was $56,000 Determine the tax consequences of this pledge to Aldo. Complete this question by entering your answers in the tabs below. Required ARequired B profit percentage to 2 Compute Aldo's recognized gain under the installment sale method in years 1 and 2. (Round gross decimal places and final answers to the nearest whole dollar amount.) Recognized Gain Year 1 Year 2