Exercise 18-22 (Algorithmic) (LO. 2)

Martin transfers real estate with an adjusted basis of $369,000 and fair market value of $516,600 to a newly formed corporation in exchange for 100% of the stock. The corporation assumes the liability on the transferred real estate in the amount of $439,110.

Determine Martins recognized gain on the transfer and the basis for his stock.

If amount is zero, enter "0".

Martin has a recognized gain on the transfer of $__________ and a basis of $___________ for his stock.