John transfers a property (A/B $10,000, FMV $50,000) to Brown Corp. in exchange for 100% of the Brown stock, which is worth $50,000. The property is subject to a liability of $20,000, which Brown assumes. The transfer is for business purpose. The $20,000 liability is also for business purpose.

a) What is Johns recognized gain?

b) What is Johns stock basis in the Brown corporation?

c) What is Browns basis in the property?