Francine incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and tax-adjusted bases.

FMV. Adjusted Tax Basis

Inventory. $54,750 $16,600

Building. 172,250. 100,500

Land. 57,000. 155,250

Total. 284,000. 272,350

The corporation also assumed a mortgage of $66,500 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $217,500.

1. What amount of gain or loss does Francine realize on the transfer of the property to her corporation?
2. What amount of gain or loss does Francine recognize on the transfer of the property to her corporation?
3. What is Francine's adjusted tax basis in the stock she receives in her corporation?