Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $200,000 in return for 50 percent of the corporations stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporations stock: (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.)

	FMV	Adjusted Tax Basis
Building	$ 75,000	$ 20,000
Land	175,000	80,000
Total	$ 250,000	$ 100,000

To equalize the exchange, Wizard Corporation paid Hermione $50,000 in addition to her stock.

a. What amount of gain or loss does Ron realize on the formation of the corporation? What amount, if any, does he recognize?

Gain or loss realized
Gain or loss recognized