An individual contributes property with a FMV in excess of basis to a corporation in exchange for stock. The property is subject to a mortgage. In each of the following instances, determine the basis of the stock in the hands of the shareholder and the basis of the property contributed in the hands of the corporation. Assume that the 80% rule is met.
a. The property is subject to a mortgage that is less than basis and the corporation assumes the mortgage.
b. The property is subject to a mortgage that is more than basis and the corporation assumes the mortgage.