3. (10 Points) Wes forms the Reef Corporation (C corp") by transferring a building in Miami (basis of $125,000, fair market value of $775,000). One month prior to incorporating Reef, Wes borrows $100,000 for personal reasons and transfers the liability to Reef Corporation. Reef Corporation issues stock worth $675,000 to Wes. a. What are the tax consequences to Wes and to the Reef Corporation? b. How would the tax consequences to Wes and the Reef Corporation differ if the transferred debt was borrowed for business reasons