1. Isiah will contribute the following properties to a newly formed corporation:

Cash $50,000

Inventory $20,000 value (tax basis of $15,000)

Land $80,000 value (tax basis of $50,000)

There is a mortgage on the land of $40,000 which the corporation will assume. In return, he will receive stock of the new corporation with a value of $110,000.

Compute the amount of realized gain or loss that Isiah will have on this transaction. Show your work.