On January 7, 2021, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under 351. The shareholders basis, the fair market value, and the built-in gain (loss) of each property are:

Martin Corporation Properties
Property	Shareholder's Basis	Fair Market Value	Built-in Gain (Loss)
Property 1	$300,000	$375,000	$75,000
Property 2	$525,000	$400,000	($125,000)

Net Built-In Loss: ($50,000)

Martin adopts a plan of liquidation later in the year and distributes Property 2 to a 30% shareholder when the property is worth $350,000.

Compute Martins basis in Property 1 and in Property 2 as of January 7, 2021.

Compute Martins realized and recognized loss on the liquidating distribution of Property 2.