Nancy exchanges rental property (basis of $50,000; subject to debt of $40,000 on it; fair market value of $960,000), for 80% of the stock of Yards...

Nancy exchanges rental property (basis of $50,000; subject to debt of $40,000 on it; fair market value of $960,000), for 80% of the stock of Yards Corporation. Yards also assumes the $40,000 debt. The other 20% of the stock is owned by George who acquired it several years ago. What are the tax consequences to Nancy from this deal? Does she recognize taxable gain on the transfer? What is her basis in the Yards stock?