Assume that in the first step of the reorganization, Auto Corp. will exchange $7,104,621 worth of Auto Corp. stock plus land with a fair market value of $1,818,657 for all of Battery Corp.'s assets. Auto Corp.'s land had a basis of $30,192 prior to the exchange. Battery Corp.'s assets had a basis of $2,393,021 prior to the exchange.

Assume that in the second step of the reorganization, Battery Corp. will distribute the $7,104,621 in Auto Corp. stock plus the land that it just acquired from Auto Corp. to Battery Corp.'s sole shareholder, Sydney, in exchange for all of Sydney's shares of Battery Corp. stock. Prior to the exchange, Sydney's basis in her shares of Battery Corp. stock was $3,254,975. Sydney will now be a shareholder of Auto Corp. instead of Battery Corp.

What amount of gain/loss will Auto Corp. recognize as a result of the reorganization?