XYZ Inc. liquidated. Pursuant to the plan of liquidation, ABC Inc., which owned 80% of the stock of XYZ, received as a distribution in exchange for all of its stock in the corporation, 80% of the inventory and other assets of the corporation worth $700,000 that had a basis to the corporation of $900,000. All of the other shareholders received pro rata distributions of these assets and none of these assets had been contributed to the corporation by any shareholder. How much loss was recognized by XYZ, Inc. as a result of this liquidating distribution to XYZ, and what was the character of the gain