Jones, Mitchell, Carey, and Gorman are knowledgeable about landscape design. They have decided to pool their knowledge and resources to form Arrington Enterprises Inc., a C corporation. They will provide professional services to area businesses and homeowners. All participants expect to work full time for Arrington Enterprises, and each expects to contribute sufficient assets to become a 25% shareholder with a total stock equity of $50,000 each. In addition to the skills that each brings to the new entity, the owners will contribute assets that will enhance the company's ability to provide quality technical design and planning services. These assets include a building land, lawn care equipment, office furniture and equipment, and cash for initial operating expenses. The assets contributed by each shareholder, along with any related liabilities assumed by the corporation, are provided in the exhibit. For the following two shareholders in Arrington Enterprises Inc., determine the gain realized, gain recognized, and tax basis of the shares. Enter the amount for each item in the associated cells in the table below. If a response is zero, enter a zero (0). Tax Basis in Gain Realized Gain Recognized Shares 2 Jones 123 3 Carey 123 Corporate Formation (AICPA Adapted) Shareholder Contributions Help Shareholder Contributions to Arrington Enterprises Inc. FMV of noncash Basis in noncash property Cash paid to shareholder by Liability propertyassumed by Cash Shareholder contributed corporationcontributed contributed corporation 120,000 80,000 40,000 70,000 60,000 50,000 20,000 10,000 100,000 40,000 20,000 50,000 Jones Mitchell Carey Gorman 20,000 30,000 20,000