Owner Finance - Installed payments Taxes or not

[Hector Perez]

Hello BP, I have a dilemma and would like your comments

As an example, I have a house that I purchased and renovate for all in cost of $60,000, then sold it owner finance for $100,000 with $10,000 down and finance $90,000 for 25 years @10% interest, 

My old CPA took the down-payment $10,000 as ordinary income, and the gain of the $40,000 note was spread it out for the next 25years, so at the end of each year I only paid  what I earned 

My new CPA is telling me the $40,000 note has to be paid as ordinary income of 35% the first year and every year after just pay interest income, and the other method was wrong. So I have to pay 35% on the $40,000 note, which is money I have not received 

So who is right?