John owns 100% of the stock of Space, Inc, an S Corporation. Space distributes land held for 10 years as an investment with an adjusted basis of $50,000 and a fair market value of $80,000 to John.

1) What is Spaces recognized gain or loss? ________________ (Type gain as positive or loss as negative)

2) What basis would John take in the land? _______________________

Assume instead that the land had an adjusted basis of $120,000 and a fair market value of $80,000.

3) What is Spaces recognized gain or loss? __________________ (Type gains as positive or loss as negative)

4) What basis would John take in the land? ______________________