Cable Corporation is 60% owned by Anna and 40% owned by Jim, who are unrelated. It has noncash assets, which it sells to an unrelated purchaser for $100,000 in cash and $900,000 in installment obligations due 50% in the current year and 50% in the following year. Cable will distribute its remaining cash, after payment of the federal income taxes on the sale and other corporate obligations, to Jim and Anna along with the installment obligations. Explain to the two shareholders the alternatives for reporting the gain realized on their receipt of the installment obligations.