Exercise 7-16 (Algorithmic) (LO. 2) In a qualifying reorganization, Cato Corporation exchanges $6,925,000 worth of stock and property valued at $2,770,000 ($1,385,000 basis) for all of Firestar Corporation's assets, which have a value of $9,695,000 and a $1,939,000 basis. Firestar distributes the property received from Cato. The exchange meets all Code requirements. If an amount is zero, enter "0". a. What is Cato's recognized gain/loss from the reorganization? Cato recognizes of s b. What is Firestar's recognized gain/loss from the reorganization? Firestar recognizes of s