Problem 7) Zeena incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and tax-adjusted bases. The corporation also assumed a mortgage of $40,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $350,000. The transaction met the requirements to be tax-deferred under 351. c. What is the corporation's adjusted basis in each of the assets received in the exchange? b. What amount of gain or loss does Zeena recognize on the transfer of the property to her corporation? a. What amount of gain or loss does Zeena realize on the transfer of the property to her corporation? Problem 7) Zeena incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and tax-adjusted bases. The corporation also assumed a mortgage of $40,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $350,000. The transaction met the requirements to be tax-deferred under 351. a. What amount of gain or loss does Zeena realize on the transfer of the property to her corporation? b. What amount of gain or loss does Zeena recognize on the transfer of the property to her corporation? c. What is the corporation's adjusted basis in each of the assets received in the exchange?.