Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $180,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted bases in return for 50 percent of the corporation's stock:

FMVTax-Adjusted BasisBuilding$96,000$24,000Land144,00096,000Total$240,000$120,000

To equalize the exchange, Wizard Corporation paid Hermione $60,000 in addition to her stock.

c.What amount of gain or loss does Hermionerealizeon the formation of the corporation? What amount, if any, does sherecognize?