In an exchange transaction, Jesse transferred land worth $50,000 to his 80 percent-controlled corporation in exchange for additional stock of the corporation worth $20,000 and cash of $20,000. The basis of the property to him was $15,000 and was subject to a $10,000 mortgage, which the company assumed. Jesse must report a gain of how much?

Jesse has come to you for advice so provide him with professional memo on the issue, based on the IRC, treasury regulations, and ruling and court cases if applicable. Use proper tax language and IRAC form - issues, analysis conclusion, rules.