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 received 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. Required A Required B Compute Aldo's recognized loss in year 1. Recognized loss $ 789 Required A Required B >