Betty joined Jim in forming DBJ Corp. Betty contributed appreciated land for 90 percent of the stock in DBJ. Jim received 10 percent of the DBJ stock valued at $23,500. Determine Jim's tax consequences in each of the following alternative scenarios.

b-1. Jim contributed the rights to a patent he owned to DBJ in exchange for the DBJ stock. The patent was worth $23,500 and Jim's basis in the patent was $13,915. How much gain does Jim recognize on the exchange?

b-2. What is Jim's basis in the DBJ stock?