On January 7, 2022, 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 Basis	Fair Market Value	Built in Gain or (Loss)
Property 1	$476,200	$571,440	$95,240
Property 2	$809,540	$619,060	($190,480)
Net built-in loss			($95,240)

Martin adopts a plan of liquidation later in the year and distributes Property 2 to a 25% shareholder when the property is worth $523,820.

a. Compute Martin's basis in Property 1 and in Property 2 as of January 7, 2022. Martin's basis is Property 1 is a carryover basis of $ . Martin's basis in Property 2 is a stepped-down basis of $.

b. 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 $ .