DDF Corporation sold land it had used for parking and storage for 20 years for $575,000. Its basis in the land was $68,000. It also sold some manufacturing equipment for $125,000 that it replaced with more modern equipment. The equipment sold had a basis of $760,000.
a. Determine the amount and character of DDF's gains or losses on these sales.
b. If DDF has no other property transactions, how is the net gain or loss treated.