Phillip Incorporated His Sole Proprietorship by Transferring Inventory, a Building

Phillip incorporated his 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. $$\begin{array} { l r l r } & { \text { FMV } } & & { \text { Adjusted basis } } \\\text { Inventory } & \$ 100,000 & & \$ 50,000 \\\text { Building } & 100,000 & & 250,000 \\\text { Land } & \underline { 200,000 } & & \underline { 150,000 } \\\text { Total } & \$ \underline { \underline { 400,000 } } & & \underline { \$450,000 }\end{array}$$