What is the correct method to calculate gain or loss on a repossession using the general rule for repossession of personal property?

1) Sales price of the property minus the seller's basis in the property minus any payments received from the buyer.

2) FMV of the property on the date of sale minus the seller's basis in the property.

3) Sale price of the property minus the seller's basis in the property and minus the cost of the repossession.

4) FMV of the property on the date of repossession minus the seller's basis in the property or installment agreement and minus the cost of the repossession.