Eagle Partners meets all of the requirements of 1237 (subdivided realty). Eagle Partners begins selling lots this year and sells four separate lots to four different purchasers. Eagle Partners also sells two contiguous lots to another purchaser. The sales price of each lot is $30,000. The partnership's basis for each lot is $15,000. Selling expenses are $500 per lot.

a. What are the realized and recognized gain?

The realized gain is __________ and recognized gain is __________.

b. Assume instead that the lots sold to the fifth purchaser were not contiguous.

If the lots sold to the fifth purchaser were not contiguous, Eagle Partners would have __________ ordinary income, and the __________ gain would be long-term capital gain.