On June $30,2018,$ Huxley Company sold some land to its parent company, Willow Corp for $$475,000.$ The land had cost Huxley Company $$345,000$ when it was acquired three years previously. The transaction was subject to income tax at a rate of $30\%.$ On June $30,2020,$ Willow Corp sold the land to an outside party for $$575,000.$ This transaction was also subject to income tax at a $30\%$ rate. Willow Corp owns $75\%$ of the outstanding shares of its subsidiary and accounts for its investment using the cost method; both Willow and Huxley have December ${31}^{st}$ year ends $($assume no acquisition differential was allocated to land upon acquisition$).$

What amount will appear on the "Gain on sale of land" line on the consolidated income statement for the year ended December $31,2018$ assuming no other land has been sold by either Willow or Huxley?

Select one:

a$.$ $$91,000$

b$.$ $$130,000$

c$.$ $$110,000$

d$.$ $$0$

What effect will the elimination of the unrealized intercompany gain have on consolidated income tax expense for $2018?$

Select one:

a$.$ it will increase income tax expense by $$29,250$

b$.$ it will reduce income tax expense by $$29,250$

c$.$ it will reduce income tax expense by $$39,000$