Carlos Corp., an accrual basis calendar-year C corporation, liquidated in 20X7. It was owned solely by Charles, an individual. In cancellation of all of the Carlos stock, Charles received in 20X7 a liquidating distribution of $5,000 cash and land with a tax basis of $15,000 and a fair market value of $25,000. Before the distribution, Charles tax basis in Carlos stock was $8,000. What amount of gain should Carlos Corporation recognize on the liquidation?