On September 1, 2013, Marsha sells stock in Orange, Inc., for $90,000. The stock is qualified small business stock and was purchased on August 16, 2012, for $60,000. On September 30, 2013, Marsha purchases $85,000 of Blue, Inc., also qualified small business stock.
a. What is Marsha's realized and recognized gain (or loss) on the sale of the Orange stock?
b. What is Marsha's basis in the Blue stock?