Problem 7-27 (LO. 2, 3) Target Corporation holds assets with a fair market value of $4,000,000 (adjusted basis of $2,200,000) and liabilities of $1,500,000. It transfers assets worth $3,700,000 to Acquiring Corporation in a "Type C reorganization, in exchange for Acquiring voting stock and the assumption of $1,400,000 of Target's liabilities. Target retained a building worth $300,000 (adjusted basis of $225,000). Target distributes the Acquiring voting stock and the building with its $100,000 mortgage to Wel, its sole shareholder, for all of her stock in Target. Wel's basis in her stock is $2,100,000. If an amount is zero, enter "0". a. Does this transaction meet the requirements for a "Type C reorganization? This transaction the qualifications of a "Type C reorganization because at least, of the net fair market value of the Target assets and of the gross value are transferred to Acquiring. b. The value of stock transferred from Acquiring to Target: c. What is the amount of gain (loss) recognized by Wel, Target, and Acquiring in this reorganization? Wel has of $ of which s is recognized. Target has of $ of which s is recognized. Acquiring has of which s is recognized.