Adjusted FMV Basis Inventory Building $ 56,000 $ 28,000 420,000 280,000 Land Total 644,000 $1,120,000 840,000 $1,148,000 Check my work The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $1,020,000. The transaction met the requirements to be tax-deferred under $351. (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Assume the corporation assumed a mortgage of $1,220,000 attached to the building and land. Assume the fair market value of the building is now $700,000 and the fair market value of the land is $1,484,000. The fair market value of the stock remains $1,020,000. e. How much, if any, gain or loss does Zhang recognize on the exchange assuming the revised facts? Gain or loss recognized $ 328,000