A corporation is undergoing a complete liquidation and distributes land to an individual shareholder in exchange for all of the shareholder's stock.

The land has a basis of $300,000 and a FMV of $400,000 on the corporation's books and also has a $325,000 liability. The shareholder assumes the liability on the property, and their basis in the corporation's stock is $100,000.

Which gain or loss must the shareholder recognize on the distribution?

The answer is $25,000 loss, but I am unsure how to arrive at this answer.