Sheila sells land to Elaine, her sister, for the fair market value of $40,000. Six months later when the land is worth $45,000, Elaine gives it to Jacob, her son. (No gift tax resulted.) Shortly thereafter, Jacob sells the land for $48,000.

If amount is zero, enter "0".

a. Assuming that Sheila's adjusted basis for the land is $24,000, what are Sheila's and Jacob's recognized gain or loss on the sales?

Sheila's recognized gain or loss

Jacob's recognized gain or loss

b. Assuming that Sheila's adjusted basis for the land is $60,000, what are Sheila's and Jacob's recognized gain or loss on the sales?

Sheila's recognized gain or loss

Jacob's recognized gain or loss