Pursuant to a Type D corporate reorganization, Cheng Corp. transferred some of its assets to newly formed Racine Corp. The assets transferred had a basis of \(\$ 60,000\) and a value of \(\$ 90,000\), and were subject to a liability of \(\$ 67,000\). In exchange for the assets, Cheng Corp. received 100 percent of the stock in Racine which it then distributed to its shareholders in a qualifying spin-off under Section 355.

What amount of income must Cheng Corp. recognize as a result of the reorganization?