Assets Basis to Dove Fair Market Value Cash Accounts receivable $80,000 0 $80,000 240,000 Equipment (cost $180,000; depreciation 120,000 320,000 previously claimed $60,000) Building (straight-line depreciation) 160,000 400,000 Land 40,000 160,000 Total $400,000 $1,200,000 Liabilities and Stockholders' Equity Liabilities: Accounts payable-trade Notes payable-bank Stockholders' equity: $120,000 360,000 Common stock Total 720,000 $1,200,000 What are the tax consequences of the incorporation of the business to Cynthia and to Dove Corporation? If an an amount is zero, enter "0". Cynthia: Cynthia recognizes $ because the cash basis payables gain on the transfer. Her basis for the stock in Dove Corporation is $ treated as liabilities for basis calculation purposes. Dove Corporation: Dove Corporation has a basis of $ in the assets received from Cynthia.