Castle and Dave formed an S corporation that is owned as follows: Castle 75% and Dave 25%. The corporation distributes an asset to each owner. The corporation has a basis of $45,000 for each asset. The fair market value of each of the assets is as follows: Castle $90,000 and Dave $50,000.

a. What is the recognized gain for the corporation? $

b. How much of the gain does Castle report? $

c. How much of the gain does Dave report? $