In year 1. Aldo sold investment land with a $100,000 tax basis for $95,000. Payment consisted of $15,000 cash down and the purchaser's note for $80,000. The note is being paid in 10 annual installments of $8,000, beginning in year 2 . Required: a. Compute Aldo's recognized loss in year 1 . b. In year 4. Aldo pledged the note recelved from the purchaser as partial collateral for a $75,000 bank loan. The unpaid principal at date of pledge was $56,000. Determine the tax consequences of this pledge to Aldo. Complete this question by entering your answers in the tabs below. Compute Aldo's recognized loss in year 1