QUESTION $7($CHAPTER $18)$

Brian Johns is contributing real estate to a wholly$-$owned corporation during formation. At the time of

formation the real estate is worth $$450,000,$ Brian's basis is $$200,000,$ and the real estate is subject to

two mortgages. One mortgage is $$90,000($incurred $10$ years prior to corporate formation$)$ and the other

is $$40,000($incurred $7$ years prior to corporate formation$).$

$($a$)$ What is Brian's recognized gain, if any?

$($b$)$ Assume, instead, that Brian took out the $$40,000$ mortgage one day before contributing the

property to the corporation. What is Brian recognized gain, if any?