in becker 2006 released simulation #2, the tax basis of mitchell and Carey are 40k and 20k respectively. I dont understand the answer as they are just simply the NBV only. Is this tax basis equals to basis of property (corp receives) in becker? If so, it should be the greater of NBV of the property, or debt assumed by corp.

Mitchell associated liability is 50k whcih is > NBV of 40k + recognized gain of 0, so tax basis should be 50k?

Carey associated liability is 20k which is = NBV os 20k + recognized gain of 0, tax basis is 20k. same.