In order to induce blue corporation to build a new manufacturing facility in Los Angeles, Ca, the city donates land ( fair market value of $ 250,000) and cash of $ 100,000 to the corporation. Within several months of the donation, Prakeet Corporation spends $ 350,000 (which includes the $ 50,000 received from Los Angeles) on the construction of a new plant located on the donated land.
How much gain or loss does parakeet recognize as a result of this transaction?