Cynthia, a sole proprietor, was engaged in a service business and reported her income on the

cash basis. In February of the current year, she incorporates her business as Dove Corporation

and transfers the assets of the business to the corporation in return for all of the stock in

addition to the corporation's assumption of her proprietorship's liabilities. All of the receivables

and the unpaid trade accounts payable are transferred to the newly formed corporation.

The balance sheet of the corporation immediately after its formation is as follows:

Cynthia: Cynthia recognizes $$0$ gain on the transfer. Her basis for the stock in Dove Corporation is $$\_\_\_\_\_\_\_$ because the cash basis payables are not

treated as liabilities for basis calculation purposes.

Dove Corporation: Dove Corporation has a basis of $$\_\_\_\_\_\_\_$

in the assets received from Cynthia.