Luciana, Jon, and Clyde incorporate their respective businesses and form Starling Corporation. On March 1 of the current year, Luciana exchanges her property (basis of $50,000 and value of $150,000) for 150 shares in Starling Corporation. On April 15, Jon exchanges his property (basis of $70,000 and value of $500,000) for 500 shares in Starling. On May 10, Clyde transfers his property (basis of $90,000 and value of $350,000) for 350 shares in Starling.

Answer the following:

a. If the three exchanges are part of a prearranged plan, what gain will each of the parties recognize on the exchanges?

b. Assume that Luciana and Jon exchanged their property for stock four years ago, while Clyde transfers his property for 350 shares in the current year. Clyde's transfer is not part of a prearranged plan with Luciana and Jon to incorporate their businesses. What gain will Clyde recognize on the transfer?

Please show all calculations and explain your answers. Thank you.