Martin transfers real estate with an adjusted basis of $260000 and fair market value of $350000 to newly formed White Corporation in exchange for 75% of the common stock of White Corporation. The real estate was encumbered by a mortgage of $275000 which White Corporation assumed. As part of the same organization, Rebecaca contribute equipment with a fair market value of $35000 and an adjusted basis of $15000 in exchange for 25% of the common stock and $10000 bond.

a) What amount of gain or loss does Martin realize and recognize on the transfer of the real estate?

b) What basis does Martin take in White Corporation stock?

c) What basis does White Corporation take in the real estate contributed by Martin?

d) What amount of gain or loss does Rebecca realize and recognize on the transfer of the equipment?

e) What basis does Rebecca take in White Corporation stock?

f) What basis does White Corporation take in the equipment contributed by Rebecca?