Brutus Corporation transferred inventory (basis of $10, fair market value of $30) and machinery used in a U.S. factory (basis of $50, fair market value of $75) to MapleLeaf, a newly formed corporation in Canada, in exchange for all of MapleLeaf's stock. Brutus previously deducted $30 of depreciation related to the machinery on its U.S. tax return.

How much gain, if any, must Brutus recognize on the transfers of the property to MapleLeaf?

Gain recognized on the transfer of the inventory is $ and for machinery is $.