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	$	40,000		$	12,900
Building		234,000			110,500
Land		311,250			357,000
Total	$	585,250		$	480,400

The corporation also assumed a mortgage of $180,000 attached to the building and land. The fair market value of the corporations stock received in the exchange was $405,250.

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

Fair market value of stock received $---------

Mortgage assumed by corporation -----------

Amount realized $--------

Adjusted basis of the property transferred -----------

Gain realized $----------