On January 4, 2018, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under 351. The shareholder's basis, the fair market value, and the built-in gain (loss) of each property are:

Compute Martin's realized and recognized loss on the liquidating distribution of Property 2. Martin has a realized loss of ___ and a recognized loss of ___?

Please show calculations and reasoning.

On January 4, 2018, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under 351, The shareholder's basis, the fair market value, and the built-in gain (loss) of each property are: Shareholder's Fair Market Built in Gain Value or (Loss) $383,800 $460,560 $76,760 $652,460 $498,940 ($153,520) ($76,760) Basis Property 1 Property 2 Net built-in loss Martin adopts a plan of liquidation later in the year and distributes Property 2 to a 20% shareholder when the property is worth $422,180. a. Compute Martin's basis in Property 1 and in Property 2 as of January 4, 2018. Martin's basis is Property 1 is a carryover basis of s383,800 Martin's basis in Property 2 is a stepped-down basis of s 575,700 b. Compute Martin's realized and recognized loss on the liquidating distribution of Property 2. Martin has a realized loss of X and a recognized loss of X