Pinto Corp., an accrual basis calendar year C corp, had no corporate shareholders when it liquidated in year 12. In cancellation of all their Pinto Corp. stock, each Pinto Corp. shareholder received in year 12 a liquidating distribution of $12,000 cash and land with a corporate tax basis of $15,000 and a fair market value of $20,500. Before the distribution, each shareholder's tax basis in Pinto Corp stock was $16,500. What amount of gain should each Pinto Corp shareholder recognize on the liquidating distribution?