Problem 18-34 (LO. 1, 2, 3) Allie forms Broadbill Corporation by transferring land (basis of $125,000, fair market value of $775,000), which is subject to a mortgage of $375,000. One month prior to incorporating Broadbill, Allie borrows $100,000 for personal reasons and gives the lender a second mortgage on the land. Broadbill Corporation issues stock worth $300,000 to Allie and assumes the mortgages on the land. If an amount is zero, enter "0". a. What are the tax consequences to Allie and to Broadbill Corporation? Since both $ 357(b) and 5 357(c) are applicable , Allie has a realized gain of $ 350,000 X of which $ is recognized. Broadbill Corporation has a basis of $ 600,000 in the land and Allie has a $ 125,000 475,000 basis in the stock. Check My Work b. How would the tax consequences to Allie differ if she had not borrowed the $100,000? Since only 5 357(c) is applicable Allie has a recognized gain of $ 250,000 125,000 X in the land and Allie has a $ 375,000 X basis in the stock. . Broadbill Corporation has a basis of Check My Work