The Blue Utilities Company Paid Sue $1,500 for the Right

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.