On the formation of ABC Corporation, an accrual basis corporation formed on 1/1/2021, Z, a cash basis individual, transfers land (a section 1231 asset) with a basis of $10,000 and a FMV of $70,000 in exchange for 70 shares (70%) of ABC common stock. Y, also a cash basis individual, transfers equipment (a capital asset) with a basis and FMV of $30,000 to ABC Corporation in exchange for 30 shares (30%) of ABC common stock. On 3/1/2021, two months after the formation of the corporation and pursuant to a binding agreement reached on 11/15/2020, Y transfers 50% of their shares of ABC corporation to X, a cash basis individual. What is the gain recognized by Z on the exchange of the section 1231 asset for ABC stock on 1/1/2021?