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.

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