Thomas transfers land worth $100,000 with an adjusted basis of $35,000 and a mortgage of $65,000 and equipment worth $30,000 and a basis of $10,000 to Andy Co. in return for 50 shares of stock. Thomas had previously used the land and equipment in his sole proprietorship. The transfer is part of a qualified Code Sec. 351 transfer (Thomas is one of several transferors). What are the tax consequences to Thomas?