Sheila sells land to Elane, her sister, for the fair market value of $40,000. Six months later when the land is worth $45,000, Elane gives it to Jacob, her son. (No gift tax resulted.) Shortly thereafter, Jacob sells the land for $48,000. a) Assuming that Sheila’s adjusted basis for the land is $24,000, what are Sheila’s and Jacob’s recognized gain or loss on the sales? b) Assuming that Sheila’s adjusted basis for the land is $60,000, what are Sheila’s and Jacob’s recognized gain or loss on the sales?