Johanne transferred investment property to S&J Corporation in exchange for 60 percent of the S&J Corporation stock ( 60 shares valued at $115,000 ). The property's fair market value was $190 and its adjusted tax basis to Johanne was $60,000. The investment property was subject to a $75,000 mortgage thai S&J Corporation assumed on the transfer (not treated as boot). Assuming the transfer qualifies under $351, what is the amount of the gain Johanne must recognize on the exchange and its character?