For the last five years, Ava and Fran each have owned 90 of the 180 outstanding shares of Zany Corporation stock. Ava transfers land having a(n) $20,000 basis and a(n) $27,000 FMV to Zany for an additional 45 shares of Zany stock. Fran transfers $600 cash to Zany for one additional share of Zany stock.

What amount of the gain or loss must Ava recognize on the exchange?

Ava realizes a(n) ------- ------- and recognizes --------