Mr. Green and Mr. Brown form a corporation to carry on a new business. In exchange for $175,000 worth of the new corporation's stock, Green transferred to the corporation $25,000 in cash and Properties A and B. Property A had a value of $75,000 and a basis of $50,000; Property B had a value of $100,000 and a basis of $75,000 and was subject to a $25,000 mortgage. In exchange for $50,000 worth of the new corporation's stock, Mr. Brown transferred to the corporation $25,000 in cash and Property C. Property C had a value of $175,000, a basis of $100,000 and was subject to a $150,000 mortgage.

1) Is gain or loss recognized on any of the transfers?

2) Determine the basis of each shareholder's stock in the new corporation.

3) Determine the basis of each property in the hands of the corporation.