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?

d. Would the answer to part (a) change (and if so what would the new answer be) if Victoria had taken out the mortgage 3 months before the transfer of the land to Bari?