Martha and Tom form the MT Corporation, with a transfer of the following properties:

Martha $1,200,000 cash

Tom $800,000 FMV property

$300,000 tax basis

Martha will receive 60% and Tom 40% of the corporate stock.

VARIATION 1: return to original facts (no Karla). Toms property is valued at $1,100,000 but is contributed subject to a $300,000 liability.

Complete the following

Martha Tom

Realized gain ________ ________

Recognized gain ________ _________

Basis of stock _________ _________

MT basis in contributed asset __________ _________