Jekyll and Hyde formed a corporation (Halloween Inc.) on October 31 to develop a drug to address split personalities. Jekyll will contribute a patented formula valued at $200,000 in return for 50 percent of the stock in the corporation.Hyde will contribute an experimental formula worth $120,000 and medical services in exchange for the remaining stock. Jekyll's tax basis in the patented formula is $125,000, whereas Hyde has a basis of $15,000 in his experimental formula.

a) Describe the tax consequences of the transaction.

b) Prepare the 351 statement that must be included with the return.

please explain it with full calculation detail. thank you !!