Union Corporation is owned equally by Ron and Steve. Ron and Steve purchased their stock several years ago and have adjusted bases for their Union stock of $15,000 and $27,500, respectively. Each shareholder receives two liquidating distributions. The first liquidating distribution, made in the current year, results in each shareholder receiving a one-half interest in a parcel of land that has a $40,000 FMV and an $18,000 adjusted basis to Union Corporation. The second liquidating distribution, made in the next year results in each shareholder receiving $20,000 in cash. a. What are the amount and character of Ron and Steve’s recognized gain or loss for the current year? For the next year? b. What is the basis of the land in Ron and Steve’s hands? c. How would your answers to Parts a and b change if the land has a $12,000 FMV instead of a $40,000 FMV?