Jorge contributed land he held as an investment (fair market value $132,000; basis $57,250) and inventory (fair market value $108,000; basis $80,750) to ABC Corporation in exchange for 50 percent of the ABC stock (32 shares valued at $163,200) and $76,800 cash in a qualifying 351 exchange. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.)

Assume the same facts except that Jorge received $76,800 of business property from ABC instead of $76,800 cash. What is the amount and character of gain Jorge would recognize on the exchange?

FIND:

-Gain recognized for land & Inventory

-Character of the gain for land & inventory