Pat sells real estate for $30,000 cash and a $90,000 5­year note. If her basis in the property is $90,000 and she receives only the $30,000 down payment in the year of sale, how much is Pat’s taxable gain in the year of sale using the installment sales method? 

a. $0 

b. $7,500 

c. $22,500 

d. $30,000 

e. $120,000