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 $1\mathrm{.}5$ 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.