Question: Sarah owns 2,000 shares of Class A common stock in Super Corporation. Super Corporation exchanges her 2,000 shares of Class A stock for 4,000 shares of Class B common stock. Sarah purchased the Class A shares 9 months prior to the exchange for $16,000. The market value of the Class A shares at the time of the exchange was $16,800 and the market value of the Class B shares immediately after the exchange was $17,500. What is Sarah's recognized gain on the exchange?