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Trish and Ron form Pine Corporation. Trish transfers inventory basis of $60,000 and air market value of $110,000 for 50 of the stock in Pine.

Trish and Ron form Pine Corporation. Trish transfers inventory basis of $60,000 and air market value of $110,000 for 50 of the stock in Pine. Ron transfers machinery basis of $20,000 and air market value of $60,000 and agrees to serve as manager of Pine Corporation for one year or 50% of the stock. What are the tax consequences to Trish Ron and Pine Corporation?

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