Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted tax bases:

	FMV	Adjusted Tax Basis
Inventory	$ 80,000	$ 40,000
Building	600,000	400,000
Land	920,000	1,200,000
Total	$ 1,600,000	$ 1,640,000

The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $1,500,000. The transaction met the requirements to be tax-deferred under 351.

1. Assume the corporation assumed a mortgage of $1,700,000 attached to the building and land. Assume the fair market value of the building is now $1,000,000 and the fair market value of the land is $2,120,000. The fair market value of the stock remains $1,500,000.

How much, if any, gain or loss does Zhang recognize on the exchange assuming the revised facts?