Redbird Corporation was created six years ago through contributions from Megan ($900,000) and Paul ($100,000). In a transaction qualifying as a reorganization, Redbird exchanges all of its assets currently valued at $1,500,000 (basis of $700,000) for King Corporation stock valued at $1,400,000 plus $100,000 in King bonds. Redbird distributes the King stock and bonds proportionately to Paul and Megan in exchange for their stock in Redbird. Redbird's current and accumulated E & P before the reorganization amounts to $60,000. If an amount is zero, enter "0".

a. Complete the computations below for Megan and Paul regarding this transaction Megan Realized Recognized Postponed Basis in Gain/Loss Gain/Loss Gain/Loss Stock $1,350,000 Paul Realized Recognized Postponed Basis in Gain/Loss Gain/Loss Gain/Loss Stock $150,000