Exercise 20-18 (Algorithmic) (LO. 1) On January 7, 2022, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under 351. The shareholder's basis, the fair market value, and the built-in gain (loss) of each property are: Shareholder's Fair Market Built in Gain Basis Value or (Loss) Property 1 Property 2 $542,200 $921,740 $650,640 $108,440 $704,860 Net built-in loss ($216,880) ($108,440) Martin adopts a plan of liquidation later in the year and distributes Property 2 to a 40% shareholder when the property is worth $596,420. a. Compute Martin's basis in Property 1 and in Property 2 as of January 7, 2022. Martin's basis is Property 1 is a Martin's basis in Property 2 is a basis of $ basis of $ b. Compute Martin's realized and recognized loss on the liquidating distribution of Property 2. Martin has a realized loss of $ and a recognized loss of $ Exercise 20-18 (Algorithmic) (LO. 1) On January 7, 2022, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under 351. The shareholder's basis, the fair market value, and the built-in gain (loss) of each property are: Shareholder's Fair Market Built in Gain Basis Value or (Loss) Property 1 Property 2 $542,200 $921,740 $650,640 $704,860 $108,440 Net built-in loss ($216,880) ($108,440) Martin adopts a plan of liquidation later in the year and distributes Property 2 to a 40% shareholder when the property is worth $596,420. a. Compute Martin's basis in Property 1 and in Property 2 as of January 7, 2022. Martin's basis is Property 1 is a Martin's basis in Property 2 is a b. Compute Martin's realized Martin has a realized loss of $ stepped-down stepped-up carryover basis of $ basis of $ n the liquidating distribution of Property 2. anu a recognized loss of $