In 2022, taxpayer (TP) has land that was condemned by eminent domain. TP owned this land for more than one year. The condemned land cost TP $500,000. In October of 2022, TP received $700,000 in eminent domain proceeds. In December of 2022, TP acquired replacement land at a cost of $600,000. Which of the following, if any, is correct?

TP has gain realized of $700,000; gain recognized of $200,000. TP has gain realized of $200,000; gain recognized of $100,000. TP has gain realized of $100,000; gain recognized of $200,000. TP has gain realized of $200,000; gain recognized of $200,000 None of the other choices are correct.