Young Corporation purchased residential real estate several years ago for $225,000, of which $25,000 was allocated to the land and $200,000 was allocated to the building.Young took straight-line MACRS deductions of $30,000 during the years it held the property. In the current year, Young sells the property for $285,000, of which $60,000 is allocated to the land and $225,000 is allocated to the building.

Begin by computing the gain or loss on sale. Select the formula and then enter the amounts and compute the gain or loss on the sale for the land, building and for the total Land Building Total Amount of gain: Recognized gain or loss Next, determine the character of the gain or loss on sale of the land and building. (Complete all answer boxes. For items with a $0 balance, make sure to enter "O" in the appropriate cell.) Land Building Total Character of gain Recognized gain or loss