Green Acres, Inc., owns 1,400 acres adjacent to land owned by the U.S. government. The government, wanting to sell timber from its land, had to assure prospective bidders of access to the timber. The government entered into an agreement with Green Acres for a logging road easement across land owned by Green Acres. The government agreed to pay $2 per thousand board feet of timber removed up to a maximum of $130,000. Bidders for the rights to obtain the government’s timber had to agree to pay the fee to Green Acres as part of their bids for the timber. Stanley Lumberyard, Inc. provided the highest bid and paid $80,000 to Green Acres during the first year of cutting and removing the timber and $50,000 during the second year. What tax issues should Green Acres and Stanley Lumberyard consider?