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Scooby and Shaggy form Mistic, Inc. each receiving the following amount of Mistic stock ( representing all of its outstanding stock ) in exchange for

Scooby and Shaggy form Mistic, Inc. each receiving the following amount of Mistic stock (representing all of its outstanding stock) in exchange for the following property:
Common Stock Preferred Stock
Scooby 100 Shares 0 Shares
Shaggy 0 Shares 100 Shares
Scooby Shaggy
Asset FMV $100,000 $150,000
Asset Basis 20,000100,000
Shaggy can require Mistic to redeem all of his stock at his option at any time for 1.5 times the value of 50% of Mistic's fair market value. The preferred stock has an 8% cumulative dividend rate but is otherwise nonparticipating in dividends and and nonparticipating in growth.
Required: Compute both Scooby and Shaggy's realized and recognized gain or loss on the transactions above. SHOW YOUR WORK AND EXPLAIN.

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