Jennifer, Brenna, and Linda organized Beach Corp. with authorized voting common stock of $100,000. Jennifer received 10% of the capital stock in payment for the organizational services that she rendered for the benefit of the newly formed corporation. Jennifer did not contribute property to Beach Corp. and was under no obligation to be paid by Brenna or Linda. Brenna and Linda transferred property in exchange for stock as follows:

Adjusted Basis

Fair Market Value

% of Beach Stock Acquired

Brenna

$5,000

$20,000

20%

Linda

60,000

70,000

70%

What amount of gain did Linda recognize from this transaction