1. On Dec. 31, 2020, Mary sold a piece of investment land for $1M (basis = $200,000). Mary received $100,000 cash on Dec. 31, 2020 and a $900,000 note. The note calls for three annual installment payments of $300,000 beginning in 2021 and provides for annual interest payments (at market rate, beginning in 2021). Mary will use the installment sale method to report her taxable gain.

How much of the $100,000 cash payment will Mary include in gross income in 2020?

2. Walt Corp. received the following in 2020:

$46,000 payment for services provided

$5,000 gain on the sale of a state bond sold in 2020

$1,000 interest on savings account

$2,000 interest on a municipal bond 

$1,000 interest on corporate bond

$3,000 dividends

$100,000 life insurance proceeds. Walt Corp. was named as the beneficiary on a key-person life insurance policy taken out on a Walt Corp. executive, and the executive passed away in 2020.

What is Walt's gross income for 2020?