Marcus and Madison are equal members of an LLC. On January 1 of the current year, to acquire a one-third interest in the entity, Nora contributed a parcel of land she had held for investment. (At this time, the entity will be renamed MMN, LLC.) Nora had purchased the land for $120,000; its fair market value was $90,000 at the contribution date.

A few years later, the LLC sells Noras land for $84,000. At the beginning of that year, Noras tax basis capital account was $200,000 and Marcus and Madisons tax basis capital accounts were $170,000.

1. How much is the recognized gain or loss? How is it allocated among the LLC members?