Twelve years ago, Molly purchased two lots in an undeveloped subdivision as an investment. Each lot has a $25,000 basis and a $60.000 FMV when the city condemns one lot for use as a municipal sewage treatment plant. As a result of the condemnation, Molly receives $60,000 from the city. Because the value of the other lot is reduced, the city pays $14.000 severance damages. She does not plan to replace the condemned lot. Read the requirement a. The recognized gain due to the condemnation is b. The recognized gain from receipt of the severance damages is c. The basis for the lot she continues to own is