Skinny Pete and Badger form Mule Corporation. Skinny Pete transfers a building (basis of $65,000 and fair market value of $224,000) for $41,600 cash and 60% of the stock in Mule Corporation (stock valued at $134,400). The building is subject to a mortgage of $48,000) which is also transferred to Mule Corporation. Badger transfers machinery (basis of $37,000 and fair market value of $19,000) and agrees to serve as manager of Mule Corporation for one year for the other 40% of the stock (stock valued at $89,600).

Solve for the following specific tax consequences of the transaction (SHOW WORK):

Skinny Pete's recognized gain:____________

Skinny Pete's stock basis following the transaction:______________

Badger's recognized gain:_____________

Badger's stock basis following the transaction:_____________