Samuel and Zachary formed S&Z Accounting & Tax Services, Inc. on 1/1/15. Each shareholder contributed the following in exchange for his corporate stock:

Asset (Basis) Asset (FMV) Shares received

Samuel - property (acquired 5 years ago) 25,000 40,000 90

Zachary - services 0 20,000 10

25,000 60,000 100

a) Does SEC. 351 apply?

b) compute Samuels's realized gain or loss

c) compute Samuels's recognized gain or loss

d) what is samuel's basis in his stock

e) what is the corporation's basis in the property received from samuel

f) does Zachary have to recognize any income? if so, how much and what is its nature? What is his basis in his stock?