5. Marcus sells a parcel of land that he has held for investment purposes.

His basis in the land is $16,000 and the selling price is $20,000. Marcus is to receive the $20,000 at the rate of $5,000 per year for four years, plus interest on the unpaid balance. How much of each payment will be recognized as gain in the year received under the installment method?

a. $6,000

b. $4,000

c. $3,000

d. $1,000