Vic owns land worth $450 in which she has a basis of $125. The land is subject to a mortgage of $100 which Vic took out several years ago in order to buy the land. She transfers the land to Bari Corp in exchange for all its common stock work $350, and Bari assumes the mortgage.

Does Vic recognize gain on the transfer and if yes, how much? No, section 351 deferred gain

What is Vic’s basis in the stock? 25$

What is Bari’s basis in the land? 125$

Would your answer to the previous question chan ge if the land were subject to a mortgage of $200 instead of the $100 in the previous problem and the stock was worth $250? Answer separately as to parts a, b and c and if the answer would change indicate the new answer.