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Carla incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation...

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Accounting

Carla 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:

FMV Adjusted Tax Basis

Inventory $ 36,250 $ 18,600

Building 167,000 111,000

Land 274,500 391,000

Total $ 477,750 $ 520,600 The corporation also assumed a mortgage of $143,250 attached to the building and land. The fair market value of the corporations stock received in the exchange was $334,500.

Note: Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.

Required:

a. What amount of gain or loss does Carla realize on the transfer of the property to the corporation?

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

c. What is Carla's basis in the stock received in the new corporation?

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