Steve Drake sells a rental house on January 1, 2014, and receives $130000 cash and a note for $55000 at 10 percent interest. the purchaser also assumes the mortgage on the property o f$45000. Steve's adjusted basis in the house on the date of slae is $152500 and he collects only the $130000 down payment in the year of sale.

If steve elects to recognize the total gain on the property in the year of sale, calculate the taxable gain.