Lind and Post organized Ace Corp., which issued voting common stock with a fair market value of $120,000. They each transferred property in exchange for stock as follows:

Lind Building  $40,000     $82,000        60%

Post Land      $5,000     $48,000         40%

The building was subject to a $10,000 mortgage that was assumed by Ace. What amount of gain did Lind recognize on the exchange?

ans:0 , to be nontaxable, shareholder should meet 2 conditions : own 80% voting stock & No boot received. But in this Q, Lind doesnt own 80% then why its not taxable.