(1) In order to acquire Property #1, Holly transfers $50,000 of cash to George. In addition, Holly takes Property #1 subject to an existing $63,000 mortgage, gives George her own promissory note in the amount of $75,000 and a Corvette with a FMV of $47,000 and an adjusted basis in Hollys hands of $40,000

If George had originally purchased Property #1 for $100,000, what is the amount of gain that he should recognize?