Response to the following questions:
1. Corporation X realized a material gain when its facilities at a designated floodway were acquired by the urban renewal agency. How should the gain be reported in the income statement?
2. During the current year, 40 acres of land that cost $200,000 were condemned for construction of an interstate highway. Assuming that an award of $350,000 in cash was received and that the applicable income tax on this transaction is 40%, how would this information be presented in the income statement?