In the current year, Joe, Kane, Lilly, and Myron transfer the following property to Griffin Corporation (an existing corporation), which is owned equally by the four transferors.

Joe transfers land and a building with a $76,000 adjusted basis and a $128,000 FMV for additionalGriffin stock having a $112,000FMV and $16,000of marketable securities having an adjusted basis of $14,000in Griffin 's hands.$34,000 of MACRS straight-line depreciation on the building was claimed by Joe prior to the transfer.

Kane transfers equipment with a $140,000 adjusted basis and a $128,000 FMV for additional Griffin stock having a $112,000 FMV and a $16,000 20-year Griffin note.$34,000 of MACRS depreciation on the equipment was claimed by Kane prior to the transfer.

Lilly transfers inventory with a $74,000 adjusted basis and a $128,000 FMV for additional Griffin stock having $112,000 FMV and $16,000 cash.

Myron transfers land with a $22,000 adjusted basis and a $128,000 FMV, subject to a $35,000mortgage, which Griffin assumes, for additional Griffinstock having a $93,000 FMV.

a.

What amount and character of gain or loss does Joe recognize?What is Joe's basis in the Griffin stock and the marketable securities? What is Griffin's basis in the land and building?