Russell Corporation sold a parcel of land valued at $617,500. Its basis in the land was $444,600. For the land, Russell received $111,000 in cash in year 0 and a note providing that Russell will receive $247,000 in year 1 and $259,500 in year 2 from the buyer.

a. What is Russell's realized gain on the transaction? Realized gain b. What is Russell's recognized gain in year o, year 1, and year 2? Year 0 Recognized Gain 1 2