Required information Problem 19-40 (LO 19-2) (Algo) [The following information applies to the questions displayed below.] Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted tax bases: Inventory FMV $ 76,000 Building Land 570,000 874,000 Adjusted Tax Basis $ 38,000 380,000 1,140,000 $ $ 1,520,000 1,558,000 Total The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $1,420,000. The transaction met the requirements to be tax-deferred under 351. (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Problem 19-40 Part a (Algo) a. What amount of gain or loss does Zhang realize on the transfer of the property to her corporation? Gain or loss realized b. What amount of gain or loss does Zhang recognize on the transfer of the property to her corporation? Gain or loss recognized c. What is Zhang's tax basis in the stock she receives in the exchange? Tax basis d. What is the corporation's adjusted tax basis in each of the assets received in the exchange? Inventory Building Land Adjusted basis Assume the corporation assumed a mortgage of $1,620,000 attached to the building and land. Assume the fair market value of the building is now $950,000 and the fair market value of the land is $2,014,000. The fair market value of the stock remains $1,420,000. e. How much, if any, gain or loss does Zhang recognize on the exchange assuming the revised facts? Gain or loss recognized Assume the corporation assumed a mortgage of $1,620,000 attached to the building and land. Assume the fair market value of the building is now $950,000 and the fair market value of the land is $2,014,000. The fair market value of the stock remains $1,420,000. f. What is Zhang's tax basis in the stock she receives in the exchange? Tax basis Assume the corporation assumed a mortgage of $1,620,000 attached to the building and land. Assume the fair market value of the building is now $950,000 and the fair market value of the land is $2,014,000. The fair market value of the stock remains $1,420,000. g. What is the corporation's adjusted tax basis in each of the assets received in the exchange? (Do not round intermediate calculations.) Inventory Building Land Adjusted basis