(1) + Adams, Block, Smith and Jones are desirous of joining together in a business. They choose to do business in a corporate form. On February 1, 2019, they form Manufacturing Corp. with each contributing the following in exchange for Manufacturing Corp. voting common stock and non-voting preferred stock: Stockholder Contributions Shares Received Common Preferred Adams Machinery & Equip. 200 200 FMV $40,000 Basis $10,000 Block Cash FMV $40,000 200 200 Smith Services - 100 100 FMV $20,000 Jones Land & Building 500 500 FMV $100,000 Basis $30,000 (a) (b) What are the tax consequences to the corporation and the stockholders? Assume Jones did not contribute his land and building until April 1, 2019. What effect will this have upon your answer in part (1)?