Sam and Devon agree to go into business together selling collegelicensed clothing. According to the agreement, Sam will contribute inventory valued at $$112,000$ in return for $80$ percent of the stock in the corporation. Sam's tax basis in the inventory is $$78,000.$ Devon will receive $20$ percent of the stock in return for providing accounting services to the corporation $($these qualify as organizational expenditures$).$ The accounting services are valued at $$28,000.$

Note: Negative amounts should be indicated by a minus sign.

Leave no answer blank. Enter zero if applicable.

a$.$ What amount of income, gain, or loss does Sam realize on the formation of the corporation? What amount, if any, does Sam recognize?

Answer is complete but not entirely correct.

$\backslash$table$[[$Income$,$ gain, or loss realized,$$,(28,000)x$