Jacob forms BBC Corporation by transferring land $($basis of $$225,000,$ fair market value of $$875,000),$ which is subject to a mortgage

of $$475,000.$ One month prior to incorporating BBC$,$ Jacob borrows $$200,000$ for personal reasons and gives the lender a second

mortgage on the land. BBC Corporation issues stock worth $$400,000$ to Jacob and assumes both mortgages on the land. What are

the tax consequences to Jacob and BBC$?$