Great corporation is owned equally by Rondell and Sylvester. Rondell and Sylvester purchased their stock several years ago and have adjusted bases for their great stock of $10,500 and $28.500 respectively. Each shareholder recieves two liquidating distributions. The first liquidating distribution made in the current year, results in each shareholder recieving a one half interest in a parcel of land that has a $41,000 FMV and a $23,000 adjusted base for great corporation.The second liquidating distribution, made in the next year, results in each shareholder receiving $18,000 cash.

a. What are the amount and character of Rondell and Sylveters recognized gain or loss for the current year? For the next year?

b. What is the basis of the land in Rondell and Sylvesters hands?

c. How would your answers to part a and b change if the land has a $13,000 FMV instead of a $41,000 FMV?