Ed operates a storage business as a sole proprietorship and owns the following assets acquired in 1998:

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