In a qualifying reorganization, Cato Corporation exchanges $$1,200,000$ of stock and property valued at $$500,000($ $$245,000$ basis$)$ for all of

Firestar Corporation's assets, which have a value of $$1,700,000$ and a $$350,000$ basis. Firestar retains the property received from Cato. The

exchange meets the $368$ requirements.

a$.$ What is Cato's recognized gain$/$loss from the reorganization?

Cato recognizes a

$$ of $

$.$

b$.$ What is Firestar's recognized gain$/$loss from the reorganization?

Firestar recognizes a