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The Blue Utilities Company paid Sue $1,500 for the right to lay an underground electric cable across her property anytime in the future.
a. Sue must recognize $1,500 gross income in the current year if the company did not install the cable during the year.
b. Sue must recognize $1,500 gross income in the current year regardless of whether the company installed the cable during the year.
c. Sue must recognize $1,500 gross income in the current year, and when the cable is installed she must reduce her cost basis in the land by $1,500.
d. 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 $1,500.
e. None of the above.
Meliza was watching an episode of television show Small Wonder. A couple of hours later, she was violently ill also vomited several times. Meliza soon developed an aversion to hamburgers, but not to television program, because of what.
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