Question 3 (10 points) In September 2020, XYZ Corp sells heavy duty equipment to ABC CO XYZ receives $125,000 in cash and an interest free note receivable for a total of $2,100,000 which will be payable in equal installments over a seven-year period beginning in 2021. XYZ's adjusted basis in the building on the date of sale is $1,750,000 and it collects only the $125,000 down payment in the year of the sale. a Calculate XYZ taxable gain if it elects to recognize the TOTAL gain on the property in the year of sale. b. Assuming XYZ uses the installment sale method, calculate the taxable gain in the year of sale! c. Assuming XYZ uses the installment sale method, calculate the taxable gain it must report in the first year after the sale. I Focus a E 99