Apple and Banana incorporated Fruit Corp. in 2023. As part of a prearranged transaction, Apple transferred equipment worth $86,801 (basis of $18,428) to Fruit Corp. in exchange for 50% of Fruit Corp.s stock (FMV = $86,801), and Banana provided services worth $86,801 in exchange for the other 50% of Fruit Corp.s stock (FMV = $86,801).

What amount of gain does Apple recognize on the transaction? What is Apple's basis in the Fruit Corp. stock immediately after the transaction?