All of the following statements regarding the installment method of reporting gain from a disposition of property are correct except?
1) An installment sale is a sale of property in which the seller receives at least one payment after the year of sale.
2) The installment method permits the seller to spread out the taxable gain over more than one year.
3) The payments received under an installment sale may each include capital gains, return of capital, and interest.
4) The installment sale method may be used for securities sold in the secondary market.