Bill decided to incorporate his printing business and to give his manager, Charlie, a share in the business. Bill's sole proprietorship transferred the following to Tom Co.:

Basis Value

Accounts payable $0 $7,000

Accounts receivable 0 8,000

Printing press 6,000 10,000

Truck 24,000 20,000

Cash 2,000 2,000

Bill received 70 shares of the stock, worth $29,000. Charlie invested $2,000 in cash and received the remaining 30 shares of the stock.

What are the tax consequences to Bill, Charlie, and Tom Co.?