Sam and Devon agree to go into business together selling college-licensed clothing. According to the agreement, Sam will contribute inventory valued at $100,000 in return for 80 percent of the stock in the corporation. Sams tax basis in the inventory is $60,000. Devon will receive 20 percent of the stock in return for providing accounting services to the corporation (these qualified as organizational expenditures). The accounting services are valued at $25,000. 1)Explain how to calculate the gain/loss realized, gain/loss recognized and the basis in the stock received by the shareholder. Also discuss the tax result when services are exchanged for stock.