Diego transfers real estate with an adjusted basis of $465,800 and fair market value of $652,120 to a newly formed corporation in exchange for 100% of the stock. The corporation assumes the liability on the transferred real estate in the amount of $554,302.

Determine Diego's recognized gain on the transfer and the basis for his stock.

Diego has a recognized gain on the transfer of $BLANK and a basis of $BLANK for his stock.