A corporation is undergoing a complete liquidation and distributes land to an individual shareholder in exchange for all of the shareholders stock. The land has a basis of $300,000 and a FMV of $400,000 on the corporations book and also has a $325,000 liability. The shareholder assumes the liability on the property and their basis in the corporations stock is $100,000. Which gain or loss must the shareholder recognize on the distribution?

$25,000 gain

$75,000 gain

$75,000 loss

$25,000 loss