Carl transfers land to Cardinal Corporation for 90% of the stock in Cardinal Corporation worth $60,000 and the assumption by Cardinal of a mortgage on the land in the amount of $100,000. The land, which has a basis to Carl of $70,000, is worth $160,000.

Required:

1. Determine the amount of gain or loss, if any, that Carl must recognize.
2. Determine Carls basis in his shares of Cardinal Corporation stock. Show your work.
3. Determine Cardinals basis in the land. Show your work.