In exchange for voting stock, Barry contributes property to ABC corporation as part of a qualifying Section 351 exchange.The property is encumbered with a mortgage of $100,000 and a second mortgage of $200,000, has a FMV of $320,000 and a tax basis of $140,000 to Barry.There was a valid business purpose to Barry incurring this $100,000 mortgage on the property. In addition, the corporation assumes the second liability of Barry's, in an amount equal to $20,000.This $20,000 was a gambling debt of Barry's incurred on a recent visit to Las Vegas.There was no valid business purpose to this latter assumption.

A)What is barry's recognized gain, if any, from the exchange?

B)What is Barry's tax basis in his stock?

C)What is the corporation's tax basis in the property?