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 bases:

FMV Adjusted Basis
Inventory $67,200 $33,600
Building 120,000 75,000
Land 199,400 263,000
Total $386,600 $371,600

The corporation also assumed a mortgage of $96,000 attached to the building and land. The fair market value of the corporation’s stock received in the exchange was $290,600. The transaction met the requirements to be tax-deferred under §351.

a. What amount of gain or loss does Zhang realize on the transfer of the property to her corporation?