If Pauline transfers an asset to Frank and the asset is subject to a liability that is assumed by Frank, how does Frank's assumption of the liability affect the amount realized by Pauline on the transfer? How does Frank's assumption of the liability affect his basis in the asset?

If Pauline transfers an asset to Frank and the asset is subject to a liability that is assumed by Frank, how does Frank's assumption of the liability affect the amount realized by Pauline on the transfer? How does Frank's assumption of the liability affect his basis in the asset?