During $2021,$ Steve purchased land for $$50,000.$ On December $31,2023,$ a professional real

estate appraiser valued this land at $$80,000.$ In January $2024,$ Steve borrowed $$20,000$ from

a local bank, using this land as collateral for the loan. On March $1,2027,$ Steve sold this land

for $$90,000.$ Which statement is TRUE?

Steve must recognize $$30,000$ of gross income in $2023.$

Steve must recognize $$20,000$ of gross income in $2024.$

Steve must recognize $$40,000$ of gross income in $2027.$

Steve must recognize $$90,000$ of gross income in $2027.$