Jocelyn contributes land with a basis of $36,500 and fair market value of $54,750 and inventory with a basis of $11,200 and fair market value of $16,800 in exchange for 100% of Zion Corporation stock. The land is subject to a $9,125 mortgage.

Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received.

The exchange (Is or Is not) tax-free under 351 because the release of a liability (is or is not) treated as boot under 357(a). As a result, Jocelyn has income of $_____ and a basis $ ______in her stock.