Amy owns land, fair market of 81,000, in which she has an adjusted basis of 70,000. She transfers that land to Newco in exchange for 81 Newco common shares. Bob transfers his services with a value of 19,000 to Newco in exchange for 19 shares of Newco stock.

What are all of the consequences to:

(a) Amy (maximum page typewritten)?

(b) Bob (maximum page typewritten)?

(c) Newco (maximum page typewritten?