1.Fredrick transfers land worth $200,000, basis of $100,000, to a newly formed corporation, Relast Corporation, for all of Relast's stock, worth $125,000, and a 10-year note. The note was executed by Relast and made payable to Fredrick in the amount of $75,000. As a result of the transfer, what is Fredrick's recognized gain?

Is this the same as taking the $75,000 note minus the $100,000 basis ?