Required information (The following information applies to the questions displayed below.) Elaine pays $40,000 cash for Martha's one-third interest in the Lakewood Partnership. Just prior to the sale, Martha's basis in Lakewood is $140,000. Lakewood reports the following balance sheet: Tax Basis FMV Assets Cash Land $ 50,000 $ 50,000 370,000 70,000 $420,000 $120,000 Totals Liabilities and capital Capital -Mary -Martha -Margaret Totals $140,000 140,000 140,000 $420,000 Assume the land had been purchased several years ago and the partnership does not have a $754 election in place. a-1. What is the amount of Martha's recognized gain or loss on the sale? Amount of recognized Gain or loss $ a-2. What is the character of Martha's recognized gain or loss on the sale? The Character of Gain or Loss is