Carla incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporations stock. The property transferred to the corporation had the following fair market values and adjusted bases:

	FMV			Adjusted Basis
Inventory	$	25,750		$	16,800
Building		220,000			131,250
Land		289,500			328,000
Total	$	535,250		$	476,050

The corporation also assumed a mortgage of $177,000 attached to the building and land. The fair market value of the corporations stock received in the exchange was $358,250. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)

4.

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a. What amount of gain or loss does Carla realize on the transfer of the property to the corporation?

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5.

value: 1.00 points

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b. What amount of gain or loss does Carla recognize on the transfer of the property to the corporation?

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6.

value: 1.00 points

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c. What is Carlas basis in the stock she receives in her corporation?