Seller owns a parcel of investment land which Seller purchased four years ago for $2,000. Seller sells it to Buyer under an arrangement where Buyer pays Seller $2,000 cash in the current year and four 8 percent interest bearing notes to be paid off in each of the succeeding four years. Each note has a $2,000 face amount and a $1,750 fair market value. Disregarding the tax consequences of any interest payments, what results to Seller in each of the five years if in the alternative:

(a)Seller is a cash method taxpayer who makes no453(d)election.

(b)Seller is an accrual method taxpayer who makes no453(d)election.