TPW, a calendar year taxpayer, sold land with a $535,000 tax basis for $750,000 In February. The purchaser pald $75,000 cash at closing and gave TPW an Interest-bearing note for the $675,000 remaining price. In August, TPW recelved a $55,950 payment from the purchaser consisting of a $33,750 principal payment and a $22,200 Interest payment. In the first year after the year of sale, TPW recelved payments totaling $106,900 from the purchaser. The total consisted of $67,500 principal payments and $39,400 Interest payments. a. Compute TPW's galn recognized under the Installment sale method. b. Compute TPW's tax basis In the note at the end of the year