Jocelyn contributes land with a basis of $42,500 and fair market value of $63,750 and inventory with a basis of $10,600 and fair market value of $15,900 in exchange for 100% of Zion Corporation stock. The land is subject to a $10,625 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 7( 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 $....... 3 and a basis $....... in her stock.