A land held for investment with the fair market value of $100,000 sold for $36,000 cash and a note for $64,000 due in two years. The note bores the interest of 11% while the applicable Federal rate is 7%. The land cost $40000. because the buyer has good credit and high interest rate on the note, the seller thinks the note's fiar market value will be $74,000. How much the gain seller can recognize?