Russell Corporation sold a parcel of land valued at $592,500. Its basis in the land was $391,050. For the land, Russell received $51,750 in cash in year 0 and a note providing that Russell will receive $214,000 in year 1 and $326,750 in year 2 from the buyer (plus reasonable interest on the note)
- What is russell's realized gain on the transaction?
- What is russell's reconognized gain in year 0, year 1, and year 2?