Juliana purchased land three years ago for $87,400. She gave the land to Tom, her brother, in the current year, when the fair market value was $122,360. No gift tax is paid on the transfer. Tom subsequently sells the property for $110,124.

a. Tom's basis in the land is $ and he has a realized of $.

b. Assume, instead, that the land has a fair market value of $78,660 and that Tom sold the land for $74,727. Tom's basis in the land is $ and he has a realized of $.