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 tax bases:

FMV Tax Basis

Inventory $21,750 $10,800

Building $211,000 $105,750

Land $312,500 $456,550

The corporation also assumed a mortgage of $156,000 attached to the building and land. The fair market value of the corporations stock received in the exchange was $389,250. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)

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

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

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

Amount realized