Afton transferred to a newly formed corporation, land with a FMV of $200,000, Basis of $190,000, subject to a liability of $25,000 for acquisition debt, which the corporation assumed. Afton received 50% of the corporations stock. Blake transferred equipment with a FMV of $200,000, Basis of $180,000. Blake received 50% of the corporations stock and $25,000 from the corporation.

Determine the tax consequences to the transferors and to the corporation.