Corgill Corporation sold land that it had used for storing old equipment. Corgill owned the land for seven years and it had a basis of $234,000. Corgill received $50,000 cash and a note for $100,000 and the purchaser assumed Corgill's $150,000 mortgage on the property. Corgill also paid a realtor's fee of $15,000 and other selling expenses of $2,000.
a. What is Corgill's gain or loss on the sale and what is its character?
b. If Corgill had held the land as an investment, how would your answer change?