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.

Assume Hermiones adjusted tax basis in the land was $200,000. f. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize?

Gain or Loss Realized = $30,000

Gain or Loss Recognized ??