Gull Corporation was undergoing reorganization under the bankruptcy laws. Its shareholders, who had made loans of $300,000 to the corporation, agreed to accept additional stock with a value of $200,000 instead of repayment on the debt. The Old Line Insurance Company, which had a $400,000 mortgage on the building, agreed to reduce the principal to $250,000. A trade creditor with a receivable of $150,000 from the company agreed to accept S70,000 in full payment for the debt incurred to purchase goods that were still on hand. Finally, the company transferred some equipment with an adjusted basis of S90,000 in satisfaction of a liability for $120,000. Compute the corporation's gross income and other adjustments necessary as a result of the above transactions