Luke sold a building and the land on which the building sits to his wholly owned corporation, Studemont Corporation, at fair market value. The fair market value of the building was determined to be $325,000; Luke built the building several years ago at a cost of $200,000. Luke had claimed $45,000 of depreciation on the building. The fair market value of the land was determined to be $210,000 at the time of the sale; Luke purchased the land many years ago for $130,000.

b. What are the amount and character of Luke's recognized gain or loss on the land?