Harry forms the Nectarine Corporation during the 2017 tax year. To form the corporation, Harry transfers assets having a fair market value of S650,000 to Nectarine Corporation for 100 percent of the corporation's stock. Harry's adjusted basis in the assets transferred was S450,000 and Nectarine Corporation assumed a S200,000 mortgage on the assets. If the fair market value of the stock received by Harry is S450,000, what is his basis in the stock received from the corporation? 1.$350,000 2, $650,000 3.$250,000 4.$450,000 QUESTION 17 An equal partnership is formed by Rita and Gerry. Rita contributes cash of $10,000 and a building with a fair market value of $150,000, adjusted basis of S55,000 and subject to a liability of S40,000. Gerry contributes cash of $100,000. What is the partnership's basis in the building contributed by Rita? 1.$150,000 02, $60,000 o 3 s90,000 o 4. $55,000