I:13-63 Related Party Transactions. Ed operates a storage business as a sole proprietorship and owns the following assets acquired in 2003:

Warehouse $400,000 Minus: Accumulated depreciation (230,000)

Adjusted basis $170,000 Land 65,000 The FMV of the warehouse and the land are $500,000 and $200,000, respectively. Ed owns 75% of the stock of the Crane Corporation. If he sells the two assets to Crane at a price equal to the FMV of the assets, determine the recognized gain and its character due to the sale of the:

a. Building

b. Land