Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $280,000 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	$ 105,000	$ 28,000
Land	245,000	112,000
Total	$ 350,000	$ 140,000

To equalize the exchange, Wizard Corporation paid Hermione $70,000 in addition to her stock.

Assume Hermiones adjusted tax basis in the land was $350,000.

1. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize?