Breslin Inc. made a capital contribution of investment property to its 100 percentowned subsidiary, Crisler Company. The investment property had a fair market value of $3,100,000 and a tax basis to Breslin of $2,860,000.

What gain or loss, if any, would Crisler recognize if it received a contribution to capital of the property from the local city government? What basis would it take in the property?