Problem $1$

The following facts are given regarding a sole proprietor transferring the assets of his business to a new corporation:

$\backslash$table$[[,$Balance Sheet Adj. Basis,FMV$],[$Cash$,$$$50,000,$$$50,000],[$Accounts Receivable,$50,000,50,000],[$Less: Allowance for Bad Debts,$(5,000),(5,000)],[$Building$,575,000,600,000],[$Less: Accum. Depreciation,$(50,000),],[$Accounts Payable,$50,000,50,000],[$Mortgage Payable,$200,000,200,000]]$

Based upon the above information:

What is the shareholder's basis in the stock received?

Answer:

$2.$ What is the shareholder's basis in the stock received if the Mortgage Payable is $$600,000?$

Answer: