Elom and Jedediah each own 50% of Baker Corporation and have owned it for five years. The adjusted bases of their Baker stock are $80,000 and $50,000 respectively. Baker Corporation liquidates and distributes $95,000 to Elom in exchange for her stock. It distributes a parcel of land with a $160,000 FMV which is subject to a $90,000 mortgage to Jedediah in exchange for his stock. Jedediah assumes the mortgage and also receives $10,000 in cash. Fully explain all answers

a) What is the character and amount of each shareholder's gain or loss?

b) What is each shareholder's basis in the property received in the liquidation?