Exercise 7-16 (Algorithmic) (LO. 2) In a qualifying reorganization, Cato Corporation exchanges $8,935,000 worth of stock and property valued at $3,574,000 ($1,787,000 basis) for all of Firestar Corporation's assets, which have a value of $12,509,000 and a $2,501,800 basis. Firestar distributes the property received from Cato. The exchange meets all Code requirements. If an amount is zero, enter "0". a. What is Cato's recognized gain/loss from the reorganization? Cato recognizes of $ b. What is Firestar's recognized gain/loss from the reorganization? Firestar recognizes of $