In a qualifying reorganization, Cato exchanges $1.2 million worth of stock and property valued at $500,000 ($245,000 basis) for all of Firestar's assets, which have a value of $1.7 million and a $350,000 basis. Firestar distributes the property received from Cato. The exchange meets the section 368 requirements.

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

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

Please show all calculations (if any) and explain your answers. Thank you!