Gross profit percentage: Mike sold a 40-acre tract of land for $500,000 on January 1. The land had an adjusted basis of $300,000. The agreement specified a down payment of $100,000, with the remaining $400,000 sales price to be paid over a five-year-note term at 10% interest. (a) What is the gross profit percentage from the sale? (b) What is the capital gain on the down payment (c) What is the return of capital on the down payment? (d) If Mike received a note payment of $120,000 in the first year, of which $40,000 represented accrued interest, how much of the $120,000 is ordinary income, capital gain and nontaxable return of capital.