Heather sells land (adjusted basis, $101,000; fair market value, $131,300) to a partnership in which she controls an 80% capital interest. The partnership pays her only $70,700 for the land.

If an amount is zero, enter "0".

a. How much loss does Heather realize and recognize? Realized loss: $_______ Recognized loss: $_______

Certain transactions between a partner and the partnership are treated as if the partner were an outsider, dealing with the partnership at arm's length. Certain sales of property are subject to special rules.

b. If the partnership later sells the land to a third party for $111,100, how much gain does that partnership realize and recognize? Realized gain: $_____ Recognized gain: $____