Carol and Sugar Form a Corporation

Essay

Carol and Sugar form a corporation. Carol transfers property valued at $550,000 (basis of $400,000) to the corporation in exchange for 50 percent of the corporate stock valued at $500,000. Sugar transfers property valued at $700,000 (basis of $400,000) and a $300,000 mortgage that the corporation assumes for the other 50 percent of the stock. In addition Sugar transfers $100,000 cash to the corporation and the corporation then transfers $50,000 cash to Carol along with the corporate stock. What are Carol and Sugar's realized and recognized gains or losses and their bases in the stock received.
-Refer to the information in the preceding problem. How would your answers change if Carol and Sugar formed a general partnership in which they were equal partners instead of a corporation?