X, an individual, not a dealer, owns land and a building. X sold the property to Y for $50,000. X basis was $17,500, and the property was encumbered by a mortgage of $25,000. Y assumed the mortgage. X incurred $2,500 of selling expenses, and received a payment of $10,000 in cash.The remainder ($15,000) is to be paid over 5 years at $3,000 per year plus interest.Assume that there is no depreciation recapture.

(a)Calculate:

(1)the Contract Price

(2)the Gross Profit Ratio

(3)the amount of gain to be reported in the year of sale.

(b)What are the consequences if Y was X's whollyowned corporation?

(c)Suppose Y is X's brotherinlaw.X waives a $3,000 payment as a wedding gift.What are the income tax consequences?

Explanation should be no more than two typed pages. Just computations are not enough, need full explanation of answer so that I can properly understand and study this problem.