Gandulf, who is married and files a joint tax return with his wife, transfers property (basis of $840,000 and fair market value of $650,000) to Falk Corporation in exchange for shares of 1244 stock. Assume that the transfer qualifies under 351.

a. Assuming that Gandulf and Falk do not make an election to reduce his stock basis, the basis of the stock to Gandulf is $_____

b. The basis of the stock to Gandulf for purposes of 1244 is $ . _____

c. If Gandulf sells the stock for $400,000 two years later, he would have a capital loss of $_____ and an ordinary loss of $________ for tax purposes.