On May 1 of the current year, Briana, Chanteia, Quartney, and Shaniqua form Xiang Corporation with the following investments:

Briana purchased the land and building several years ago for $12,000 and $50,000, respectively. Briana has claimed straight-line depreciation on the building. Please note, Xiang Corporation assumed the $70,000 of liabilities form Briana. Chanteia also received a Xiang Corporation note for $15,000 due in three years. The note bears interest at a rate acceptable to the IRS. Chanteia purchased the equipment three years ago for $50,000. Quartney also receives $5,000 cash. Quartney purchased the van two years ago for $20,000..

Analyze this transaction. I need to know whether Sec 351 applies and what is the tax consequences to each party including the corporation. Provide full explanations.

Property Transferred Number of common shares issue Transferor Asset as EMV Land Building Mortgage on the land & building Equipment Van Accounting Services $30,000 70,000 Briana $12,000 38,000 400 Chanteia Quartney Shaniqua 70,000 25,000 15,000 70,000 45,000 10,000 10,000 300 50 100