12. LO.2 In a qualifying reorganization, Cato exchanges $1.2 million worth of stock and property valued at $500,000 ($245,000 basis) for all of Firestar's assets, which have a value of $1.7 million and a $350,000 basis. Firestar distributes the property received from Cato. The exchange meets the 368 requirements a. What is Cato's recognized gain/loss from the reorganization? b. What is Firestar's recognized gain/loss from the reorganization? 2