Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the requirements 1237 and during the tax year sells the first eight lots to eight different buyers for $121,000 each. Dexters basis in each lot sold is $84,700, and he incurs total selling expenses of $4,840 on each sale.

Dexter has a realized and recognized gain of $_____________ , of which $_____________ is classified as ordinary income and $_____________ as a capital gain.