63.LO.3, 4 Sheila sells land to Elane, her sister, for the fair market value of $40,000.Six months later when the land is worth $45,000, Elane gives it to Jacob,her son. (No gift tax resulted.) Shortly thereafter, Jacob sells the land for $48,000.

a. Assuming that Sheilas adjusted basis for the land is $24,000, what are Sheilas and Jacobs recognized gain or loss on the sales?

b. Assuming that Sheilas adjusted basis for the land is $60,000, what are Sheilas and Jacobs recognized gain or loss on the sales?