Question $1(2$ points$)$

During year $1$ Kerr Company sold a parcel of land used as a plant site. The amount Kerr received was $$100,000$ in excess of the land's carrying amount. Kerr's income. tax rate for year I was $30\%.$ In its year $1$ income statement, Kerr should report a gain on sale of land of

$$0$

$$100,000$

$$70\mathrm{.}000$

$$30\mathrm{.}000$