Mark receives a liquidating distribution from Arosa Corporation as part of a redemption of all of its stock. Mark's basis for his Arosa stock is $10,000. In exchange for his stock, Mark receives property with a $14,000 basis and a $25,000 fair market value that is subject to a $12,000 mortgage. What is Mark's recognized gain? Using the above information, Arosa Corporations recognized gain or loss would be