A corporation is liquidated with an individual shareholder receiving property having an adjusted basis of $60,000 and a FMV of $90,000. The property is subject to an $80,000 mortgage which the shareholder assumes. The shareholder's basis in the corporation stock is $50,000. Which gain or loss must the shareholder recognize?

$10,000 loss

$10,000 gain

$40,000 loss

$40,000 gain