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 20,000 100,000

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.