JFK and Abraham Lincoln form Convertible Co. JFK transfers land with a basis of $65 and a FMV of $220 for $55 cash and 60% of the stock in Covertible Co. (stock valued at $120). The land is subject to a mortgage of $45, which is also transferred to Convertible Co.

Abraham Lincoln transfers property (with a basis of $8 and a fmv of $20) and agrees to serve as the CEO of convertible co. for one year for the other 40% of the stock (stock valued at $80).

What is JFK's recognized gain, and stock basis?

What is Abraham Lincoln's recognized gain, and stock basis?

Correct answers will receive a thumbs up.