Mr. Zhao owns a sole proprietorship. The business assets have a $246,000 aggregate adjusted basis. According to an independent appraisal, the business is worth $400,000. Mr. Zhao transfers his business to ZJL Corporation in exchange for 1,000 shares of ZJL stock. In each of the following cases:

Required:

1. Compute Mr. Zhaos recognized gain on the exchange of assets for stock. Assume immediately after the exchange, ZJL has 20,000 shares of outstanding stock, of which Mr. Zhao owns 1,000 shares.
2. Compute Mr. Zhaos recognized gain on the exchange of assets for stock. Assume immediately after the exchange, ZJL has 1,500 shares of outstanding stock, of which Mr. Zhao owns 1,000 shares.
3. Compute Mr. Zhaos recognized gain on the exchange of assets for stock. Assume immediately after the exchange, ZJL has 1,200 shares of outstanding stock, of which Mr. Zhao owns 1,000 shares.