Previous Question Facts for Reference

Victoria owns land worth $500 in which she has a basis of $125. The land is subject to mortgage of $100 which Victoria took out several years ago in order to buy land. She transfers the land to Bari Corp in exchange for all its common stock worth $400, and Bari assumes the mortgage.

a. Does Victoria recognize gain on the transfer and if yes, how much?

b. What is Victoria's basis in the stock?

c. What is Bari's basis in the land?

Question To Be Answered

Would your answer to the previous question change if the land were to subject to a mortgage of $150 instead of $100 in the previous problem and the stock was worth $350? Answer separately as to parts a,b, and c, and if the answer would change indicate the new answer.