Annie, Joey & Lily form Animal Corporation by contributing the following:

	Basis of Property Transferred	FMV of Property Transferred	Number of Shares Issued	Cash Received by Shareholder
Annie-Transfers Inventory	40,000	85,000	40	5,000
Joey - Equipment (Cost 50,000-Depreciation Taken 15,000	35,000	82,000	40	2,000
Lily - Cash	40,000	40,000	20	0

Based on the information above, calculate Annie, Joey & Lily's basis in the Animal Corporation stock and any gain or loss recognized. Also indicate Animal Corporation's basis in the property transferred.