Acquiring Corporation transfers $500,000 stock and land with a value of $400,000 (basis of $250,000) to Target for most of its assets. The assets Target does not transfer to Acquiring in the Type A reorganization are distributed to Targets shareholder, Tia. They are valued at $100,000 (basis of $120,000). Acquiring stock and the land also are distributed to Tia in exchange for her stock in Target. Tias basis in her Target stock is $650,000.

Required: Show supporting computations for all answers to the following questions.

1. What amount of gain or loss is recognized by Acquiring Corporation? 2. What amount of gain or loss is recognized by Target Corporation? 3. What amount of gain or loss is recognized by Tia? 4. What is Tias basis in the Acquiring stock she receives?