In 2010,Kathy Sold an Apartment Building to Her 100 Percent

In 2010,Kathy sold an apartment building to her 100 percent controlled corporation,Kathy,Inc.The apartment building cost $500,000 and the balance in the accumulated depreciation account was $400,000.Kathy,Inc.paid $100,000 in the year of sale and gave Kathy a note for $900,000 plus adequate interest due in 2012.

A) Kathy can use the installment method only if tax avoidance was not a principal purpose of the transaction.
B) Kathy generally cannot report the gain by the installment method.
C) a.and b.are true.
D) a.and b.are false.
E) None of the above.