Task: Mel gives a parcel of land to his son, Scott. He had purchased the land in 1996 for $140,000 and its fair market value on the date of the gift is $125,000. No gift tax is paid. Scott subsequently sells the land for $131,000.
Q1. What is Scott's basis for the land?
Q2. What is Scott's realized and recognized gain or loss from the sale of the land?