Ed operates a storage business as a sole proprietorship and owns the following assets acquired in 1999:

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