x and y formed a joint venture on January 1, 2013. x invested plant and equipment with a book value of $500,000 and a fair value of $800,000 for a 30% interest in the venture which was to be called z inc. y contributed assets with a fair value of $2,000,000 (including $200,000 in cash) for its 70% stake in z. z reported a net income of $3,000,000 for 2013. x plant and equipment were estimated to provide an additional 5 years of utility to z. The transactions set out above were considered to be of commercial substance. x receives $200,000 in return for investing its plant and equipment. What would be the recognizable gain on January 1, 2013 arising from x's investment in y