Ed, Fran, and Georgie formed Z Corporation. Ed transferred 1,000 shares of stock of Specific Motors, Inc. with a basis of $150,000 and a fair market value of $100,000. Fran transferred 500 shares of stock of Worldwide Business Machines, Inc. with a fair market value of $100,000 and a basis of $20,000. Georgie transferred 2,000 shares of stock of Pear Computer Corporation with a fair market value of $100,000 and a basis of $5,000. Ed, Fran, and Georgie each received 10 shares of Z Corporation stock. Specific Motors, Worldwide Business Machines, and Pear Computer Corporation are all traded on the New York Stock Exchange. What are the tax consequences to Ed, Fran, Georgie, and Z Corporation as a result of the formation of the corporation?