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	$	34,500		$	17,000
Building		193,000			147,000
Land		321,750			329,000
Total	$	549,250		$	493,000

The corporation also assumed a mortgage of $135,750 attached to the building and land. The fair market value of the corporations stock received in the exchange was $413,500.

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