$1.$ In June, $2020,$ the city of Houston contributed land worth $$100,000$ to XYZ$,$ Inc. in order to encourage the company to establish a factory in the city. XYZ will report:$\_\_\_\_\_\_\_$

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$$100,000$ income and will have a basis in the property of $$100,000$

no income and will have a basis in the property of $$100,000$

no income and will have a zero basis in the property

$$100,000$ income and will have a zero basis in the property

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