41. LO.2, 3, 4 On May 2, 1986, Hannah acquired residential rental real estate for

$450,000. Of the cost, $100,000 was allocated to the land and $350,000 to the building.

On January 20, 2013, the building, which then had an adjusted basis of $0, was sold for

$545,000 and the land for $200,000.

a. Determine the amount and character of the recognized gain from the sale of the building.

b. Determine the amount and character of the recognized gain from the sale of the land.