Peter Jones has owned all 100 shares of Trenton Corporation stock for the past five years.

This year, Mary Smith contributes property with a $50,000 basis and an $80,000 FMV

for 80 newly issued Trenton shares. At the same time, Peter contributes $15,000 in cash

for 15 newly issued Trenton shares. What tax issues regarding the exchanges should Mary

and Peter consider?