Dennis contributed business assets to a new business in exchange for stock in the company. The exchange did not qualify as a tax-deferred exchange. The fair market value of these assets was $298,000 on the contribution date. Denniss original basis in the assets he contributed was $163,000, and the accumulated depreciation on the assets was $102,250.

1. What is the business's basis in the assets it received from Dennis?
2. What would be the business's basis if the transaction qualified as a tax-deferred exchange?