Jefferson Millinery Inc. (JMI) decided to liquidate its wholly-owned subsidiary, 8 Miles High Inc. (8MH). 8MH had the following tax accounting balance sheet: FMV Adjusted Basis Appreciation Cash $ 261,750 $ 261,750 Building 66,000 11,000 55,000 Land 195,750 131,500 64,250 Total $ 523,500 $ 404,250 $ 119,250

a. What amount of gain or loss does 8MH recognize in the complete liquidation? (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)

b. What amount of gain or loss does JMI recognize in the complete liquidation? (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)