On April 1, 2018, Med Inc. receives a 6-year $60,000 note in exchange for a parcel of land. The cost of the land was $35,000. Neither the market rate nor the fair value of the land can be determined. Notes of similar risk carry a 12% imputed rate of interest. Round to the nearest whole number. The financial year ends December 31.

a. The present value of the note is - $

b. There was a (gain or loss) - $ on the sale of the land of - $