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 bases:

FMV Adj. Basis

Inventory 68000 34000

Building 510000 3440000

Land 782000 1020000

Total 1360000 1394000

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 $1,260,000. The transaction met the requirements to be tax-deferred under 351.

(a) What amount of gain or loss does Zhangrealizeon the transfer of the property to her corporation?

I got (34000) calculated as 1360000-1394000

(B) What amount of gain or loss does Zhangrecognizeon the transfer of the property to her corporation?

= 0

(c) What is Zhang's tax basis in the stock she receives in the exchange?

*** this is where I am stuck.