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

	FMV			Adjusted Basis
Inventory	$	68,000		$	34,000
Building		510,000			340,000
Land		782,000			1,020,000
Total	$	1,360,000		$	1,394,000

The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporations stock received in the exchange was $1,260,000. The transaction met the requirements to be tax-deferred under 351.

Assume the corporation assumed a mortgage of $1,460,000 attached to the building and land. Assume the fair market value of the building is now $850,000 and the fair market value of the land is $1,802,000. The fair market value of the stock remains $1,260,000. e. How much, if any, gain or loss does Zhang recognize on the exchange assuming the revised facts?