Walter sells land with an adjusted basis of $175,000 and

Walter sells land with an adjusted basis of $175,000 and a fair market value of $160,000 to his mother, Shirley, for $160,000. Walter reinvests the proceeds in the stock market. Shirley holds the land for one year and a day and sells it in the marketplace for $169,000.

A. Determine the tax consequences to Walter.

B. Determine the tax consequences to Shirley.