Taylor sold a capital asset on the installment basis and did not charge interest on the deferred payment due in 3 years. Which of the following is true?

Interest will be imputed, thus increasing the capital gain.

Interest will be imputed, thus creating ordinary income.

Interest will not be imputed because the contract is for less than 5 years.

Interest will be imputed, thus reducing the seller's total income from the transactions.

None of the above