Brenda acquired only one tract of land seven years ago as an investment. In order to sell the land at a higher price, she decides to subdivide it into 100 lots. She pays for improvements such as clearing and leveling, but the improvements are not considered to be substantial. Each lot has a basis of $4,000, and a selling price of $20,000. Selling expenses of $670 were incurred to sell three lots last year. This year, twelve lots are sold, and selling expenses amount to $2,200. Requirement How much ordinary income and capital gain must be recognized in the prior and current year? First, calculate the total gain from the sale of lots in the prior year, and the allocation of that gain between ordinary income and a capital gain. (Complete all input fields. Enter a "0" for any zero balances.) Prior year Ordinary income Capital gain Total gain Now compute the amounts for the sale of lots in the current year. (Complete all input fields. Enter a "0" for any zero balances.) Current year Ordinary income Capital gain Total gain