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:

Martin adopts a plan of liquidation later in the year and distributes Property $2$ to a $30\%$ shareholder when the property is worth $$647,240.$

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

$$ basis of

Martin's basis in Property $2$ is a stepped$-$down $$ 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 $

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