Lenny and Squiggy form a corporation in a transaction that qualifies under Section 351. Lenny transfers property with an adjusted basis of $150,000 and a FMV of $200,000 in exchange for one-half of the stock. The property has an $80,000 mortgage, which the corporation assumes.

-What is the corporations tax basis in the property transferred by Lenny?

Henry transfers property with an adjusted basis of $95,000 and a FMV of $100,000 to a newly formed corporation that qualifies as a Section 351 exchange. Henry receives stock with a FMV of $85,000 and cash of $15,000. Henrys basis in the stock is:

- What is Henrys amount realized?

- Henrys gain (loss) realized?

- Henrys gain (loss) recognized?

- Henrys stock basis?