John, Paul, and George decide to incorporate their respective businesses to form band Corporation, AC Corporation. On February 1, of the current year, John exchanges his property (based off $50,000 and value of $80,000) for 120 shares in the corporation. On March 10 Paul exchanges his property (basis of $75,000 in value of $160,000) for 240 shares of the corporation. On April 5 George exchanges his property (basis of $100,000 and fair value of $240,000) for 360 shares in the corporation. What amount of gain should each party recognize if the three exchanges are part of a prearranged plan?

Assume that John and Paul exchange their property for stock five years ago, while George exchange his property for stock in the current year. George's transfer is not part of the prearranged plan. How much gain or loss, if any, should George recognize on the transfer of the property?