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In a qualifying reorganization, Cato Corporation exchanges $8,815,000 worth of stock and property valued at $3,526,000($1,763,000 basis) for all of Firestar Corporation's assets, which have

image text in transcribed In a qualifying reorganization, Cato Corporation exchanges $8,815,000 worth of stock and property valued at $3,526,000($1,763,000 basis) for all of Firestar Corporation's assets, which have a value of $12,341,000 and a $2,468,200 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 $

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