Jean Jones, Robert Martin, and Lee Brown decide to form a new business to be operated as a C corporation. All three plan to transfer property to JRL Inc. solely in exchange for newly issued common stock in the corporation. Robert and Lee plan to transfer legal title in their properties to the corporation on December 1, 20X2, at which time they will receive 800 and 700 shares of JRL stock, respectively. Jean Jones will be out of the country through January 20X3, and will wait to transfer title in her assets to JRL Inc. until February 5, 20X3, in exchange for 500 shares of stock. 1. What will be the tax consequences of this February 5 exchange if Jeans business properties have a FMV of $10,000 and a basis of $3,500 on the date she exchanges them for a 25% stock interest in JRL Inc.? 2. How would your answer change if on February 14 Jean makes a Valentines Day gift of her 500 shares to her fianc Jake?