Alice and Jane form Osprey Corporation. Alice transfers property (basis of $25,000 and value of $200,000) for 50 shares in Osprey Corporation. Jane transfers property (basis of $50,000 and value of $165,000) and agrees to serve as manager of Osprey for one year; in return, Jane receives 50 shares in Osprey. The value of Jane's services to Osprey is $35,000.

If an amount is zero, enter "0".

a. Alice recognizes $( ) gain on the transfer. Jane has income of $ ( )

b. Osprey Corporation has a basis of $( ) in the property it acquires from Alice and a basis of $( ) in the property it acquires from Jane. It has a $35,000 business deduction for the value of the services Jane renders.