When incorporating Spotfree, a cleaning company, Jayne transferred accounts receivable (fair market value $20,000 and $0 tax basis) and $12,000 of accounts payable from her cash-method sole proprietorship to Spotfree in exchange for Spotfree stock valued at $8,000. Assume the transfer qualifies under 351.

a. What is the amount and character of the gain Jayne must recognize on the exchange?

b. What is Jaynes basis in the Spotfree stock she received in the exchange?