Please answer both parts using this information:

On May 1, 2021, Lane Corp., a commercial real estate company, bought a parcel of land for $185,000. 2 months later, on July 1, 2021, Lane entered into a contract to sell the land to Pane Inc., which has an Aa long-term credit rating from Moodys, for $250,000. On August 1, 2021, Lane received 40% of the transaction price in cash along with a 4% note for the balance. The first payment on the note, plus accrued interest, is due December 1, 2021. In its 2021 income statement, how much revenue should Lane report from the sale of commercial real estate?

A. $65,000.

B. $250,000.

C. $252,500.

D. $67,500.

Refer to the previous question. Which of the following statements is correct?

1. Panes long-term credit rating from Moodys means that Panes obligations are judged to be of high quality and are subject to very low credit risk.
2. On August 1, 2021, Lane Corp. should record unearned revenue of $150,000 which represents the unexecuted portion of the contract.
3. A and B.
4. Neither A nor B.