Several years ago, Ms. Nina Stark acquired an existing building to be used in her unincorpo- 2019 through Eight - 4 (Capital Gains Reserves) rated business. The total cost of the property was $2,300,000, with $800.000 of this amount representing the estimated fair market value of the land on which the building was situated. She has decided that, in order to improve her cash position, she would like to sell this building and move her operations to leased premises. On January 1, 2019 the building is sold for $2,800,000.Of this total $900,000 reflects the value of the land on which the building is situ- ated. At this time, the UCC balance in Class 1 is $1,248,019. The building was the only asset in Class 1. The terms of the sale require the buyer to make a down payment at the time of purchase, with the remaining balance payable on January 1, 2021. No payments are required in 2020. Interest on the outstanding balance is paid on December 31 at an annual rate of 6 percent. Nina plans to use reserves to defer the payment of taxes on the capital gain which results from this sale. Required: Indicate the tax effects of these transactions on Nina's Net Income For Tax Purposes for the years 2019, 2020, and 2021, assuming: A. that the down payment was equal to 10 percent of the sales price, B. that the down payment was equal to 30 percent of the sales price, Several years ago, Ms. Nina Stark acquired an existing building to be used in her unincorpo- 2019 through Eight - 4 (Capital Gains Reserves) rated business. The total cost of the property was $2,300,000, with $800.000 of this amount representing the estimated fair market value of the land on which the building was situated. She has decided that, in order to improve her cash position, she would like to sell this building and move her operations to leased premises. On January 1, 2019 the building is sold for $2,800,000.Of this total $900,000 reflects the value of the land on which the building is situ- ated. At this time, the UCC balance in Class 1 is $1,248,019. The building was the only asset in Class 1. The terms of the sale require the buyer to make a down payment at the time of purchase, with the remaining balance payable on January 1, 2021. No payments are required in 2020. Interest on the outstanding balance is paid on December 31 at an annual rate of 6 percent. Nina plans to use reserves to defer the payment of taxes on the capital gain which results from this sale. Required: Indicate the tax effects of these transactions on Nina's Net Income For Tax Purposes for the years 2019, 2020, and 2021, assuming: A. that the down payment was equal to 10 percent of the sales price, B. that the down payment was equal to 30 percent of the sales price