Andies Inc. owns all of the stock of Theatre Corp., the only asset of which is

acreage that had been used as one of the last surviving drive-in theatres, with

an adjusted basis of $60,000 and FMV of $150,000. Andies basis in the

Theatre stock is $50,000. Yancy Corp wants to obtain the land so Theatre

exchanges the land for Yancy voting stock work $130,000 and then

liquidates. The voting stock had been treasury stock that Yancy had bought

in the market for $100,000. Yancy also transfers $1,000 cash in addition to

the voting stock. How much gain will Theatre Corp. recognize from this

exchange? Explain your response.