Our clients, Lisa and Mathew, are forming Lima Corporation where Lisa will contribute $50,000 cash to Lima for 50 shares of its stock and Matthew will contribute land that has a basis of $35,000 and $50,000 Fair Market Value (FMV) for 50 shares of Lima stock. The Corporation will borrow additional capital from a bank and then will subdivide and sell the land. What are the tax consequences for the corporation?