Client would like to know how the down payment and $1$st installment for the sale of his business will be treated for tax purposes. The business was sold to a third party for $$3,800,000$ on September $1,2024.$ The terms of the agreement are: $20\%$ down payment, $7-$year, $4\%$ note that will start payment monthly on October $1,2024.$ The tax basis is $$875,000.$ Please calculate the tax treatment realized on the down payment, and, calculate the tax treatment realized on the $1$st installment payment $($round to the nearest dollar$).$