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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

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 adjusted bases:

FMV Adjusted Basis
Inventory $ 100,000 $ 50,000
Building 750,000 500,000
Land 1,150,000 1,500,000
Total $ 2,000,000 $ 2,050,000

The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporations stock received in the exchange was $1,900,000. 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.)

Assume the corporation assumed a mortgage of $2,100,000 attached to the building and land. Assume the fair market value of the building is now $1,250,000 and the fair market value of the land is $2,650,000. The fair market value of the stock remains $1,900,000.

g. What is the corporations adjusted basis in each of the assets received in the exchange?

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