g The Blue Utilities Company paid Sue $2,000 for the right to lay an underground electric cable across her property anytime in the future. a. Sue must recognize $2,000 gross income in the current year if the company did not install the cable during the year. * b. Sue is not required to recognize gross income from the receipt of the funds, but she must reduce her cost basis in the land by $2,000. c. Sue must recognize $2,000 gross income in the current year regardless of whether the company installed the cable during the year. d. Sue must recognize $2,000 gross income in the current year, and when the cable is installed, she must reduce her cost basis in the land by $2,000. e. None of the above.
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