Jorge contributed land he held as an investment (fair market value $194,000; basis $66,500) and inventory (fair market value $122,000; basis $118,500) to abc corporation in exchange for 50 percent of the abc stock (66 shares valued at $297,000) and $19,000 cash in a qualifying $351 exchange. (negative amounts should be indicated by a minus sign. leave no answer blank. enter zero if applicable.)
assume the original facts in this example except that the inventory had an adjusted basis of $132,500 so that jorge realized a $10,500 loss on the inventory (he still realized a $127,500 gain on the land). how much gain or loss would he recognize on the exchange?