Rey receives a payment of $8,000 from the utility company to purchase an easement for their utility line. Her basis in the land is $80,500. Which of the following is correct?

		Rey must include the $8,000 in gross income.
		Rey must reduce the basis of the land by $8,000.
		Rey must include the $8,000 in the gross income and increase the basis of the land by $8,000.
		Choices a. and b. are correct.
		None of the above statements are correct.