Perry acquired raw land as an investment in 1996. The land cost $60,000. In 2012, the land is sold for…

Perry acquired raw land as an investment in 1996. The land cost $60,000. In 2012, the land is sold for a total sales price of $120,000, consisting of $10,000 cash and the buyer’s note for $110,000. Assume that Perry uses the installment method to recognize the gain and receives only the $10,000 down payment in the year of sale. How much gain should Perry recognize in 2012? Answer $5,000 $5,833 $7,000 $9,000 None of the above