Ed operates a storage business as a sole proprietorship and owns the following assets acquired in 1997:
Warehouse.....................................................$400,000
Minus: Accumulated depreciation..............(230,000)

Adjusted basis...............................................$170,000
Land....................................................................65,000
The FMV of the warehouse and the land are $500,000 and $200,000, respectively. Ed owns 75% of the stock of the Crane Corporation. If he sells the two assets to Crane at a price equal to the FMV of the assets, determine the recognized gain and its character due to the sale of the:
a. Building
b. Land