Jocelyn contributes land with a basis of $38,000 and fair market value of $57,000 and inventory with a basis of $26,800 and fair market value of $40,200 in exchange for 100% of Zion Corporation stock. The land is subject to a $9,500 mortgage. Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received. If an amount is zero, enter "0".

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.