Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporations stock. The property transferred to the corporation had the following fair market values and tax bases:

				Tax
		FMV		Basis
Inventory	$	20,000		$	10,000
Building		150,000			100,000
Land		230,000			70,000
Total	$	400,000		$	180,000

The corporation also assumed a mortgage of $200,000 attached to the building and land. The fair market value of the corporations stock received in the exchange was $220,000. The exchange met the requirements to be tax-deferred under 351.

a. What amount of gain or loss does Zhang recognize on the transfer of the property to her corporation?

b. What is Zhangs tax basis in the stock she receives in the exchange?