XYZ Corporation is organized 10 years ago by Joseph. He owns 2,000 shares of XYZ Corporation which represents 100% ownership and contributed property worth $1,000,000. The basis of the property contributed is $200,000. Later, 500 shares each were given by Joseph to his children, Kim and Maria. A property worth $350,000 is transferred by Joseph to XYZ Corporation in the current year for 1,000 more shares. The adjusted basis of the property transferred is $170,000.

Calculate the gain recognized by Joseph on the transfer.