W&X sold a business asset with a $78,300 adjusted tax basis for $100,000. The purchaser paid $30,000 in cash and gave W&X a note for the $70,000 balance of the price. W&X will not receive a payment on the note until next year. Compute W&X's gain recognized under the installment sale method.

Multiple Choice

• $7,690

• $6,510

• $4,920

• None of these choices are correct