1. Scott has decided to dispose of the following assets that he received as gifts. Compute his realized and recognized gain (loss) on these disposals:

a. In 2003, he received stock with a FMV of $75,000. The donor's adjusted basis was $100,000.He sells the stock for $72,000 this year.

b. In 2005, he received land with a FMV of $42,000. The donor's adjusted basis was $50,000.He sells the land this year for $45,000.