In the Current Year, Raven Sold Machinery with a Fair

Essay

In the current year, Raven sold machinery with a fair market value of $200,000. The machinery's original basis was $194,750 and Raven's accumulated depreciation on the machinery was $43,800, so its adjusted basis to Raven was $150,950. Raven received $49,050 in the current year and a note paying Raven $75,475 a year for two years beginning next year. What is the amount and character of the gain that Raven will recognize in the current year?