Return to the previous example: Todd Company sells a parcel of land in exchange for $100,000, which the company will receive in four equal installments of $25,000 starting in the current year. Todd purchased the land 10 years ago for $40,000 and has a 35 percent tax rate.

As noted, realized gain = $100,000 $40,000 = $60,000

Assuming Todd Company elects to apply the installment sales method for tax purposes, how much of this $60,000 gain will Todd Company recognize in each of years 14?