Carla incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for

$1$

$0$

$0$

$$percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted tax bases:

$$ FMV Adjusted Tax Basis

Inventory $

$3$

$4$

$,$

$0$

$0$

$0$

$$$

$1$

$7$

$,$

$0$

$0$

$0$

Building

$2$

$5$

$5$

$,$

$0$

$0$

$0$

$1$

$7$

$0$

$,$

$0$

$0$

$0$

Land

$4$

$2$

$5$

$,$

$0$

$0$

$0$

$5$

$1$

$0$

$,$

$0$

$0$

$0$

Total $

$7$

$1$

$4$

$,$

$0$

$0$

$0$

$$$

$6$

$9$

$7$

$,$

$0$

$0$

$0$

The corporation also assumed a mortgage of $

$2$

$0$

$4$

$,$

$0$

$0$

$0$

$$attached to the building and land. The fair market value of the corporation

$$

s stock received in the exchange was $

$5$

$1$

$0$

$,$

$0$

$0$

$0$

$.$

Required:

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

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

What is Carla's basis in the stock received in the new corporation?