At December 30, Year One, the Eighorn Corporation has net income (and taxable income) of $400,000. The company has an effective tax rate of 30 percent. Taxes have not yet been recorded. Then, on the last day of the year, the company sells land that it bought several years ago for $70,000. The sales price is $300,000. The money will be collected in Year Three. The company opts to use the installment sales method to report this transaction for tax purposes. a. What does the company now report as its net income for Year One? b. When is the liability for the income tax on the gain on the sale of the land reported? Why is this timing appropriate?