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  3. x and y formed a corporation on april 1 this year.

X and Y formed a corporation on April 1 this year. In exchange for 50...

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Accounting

X and Y formed a corporation on April 1 this year. In exchange for 50 shares of stock, X transferred equipment worth $60,000 (basis $15,000) subject to a mortgage of $10,000, which the corporation assumed. In exchange for 50 shares of stock, Y contributed land worth $70,000 (basis $9,000) subject to a mortgage of $20,000, which the corporation assumed. What is Ys recognized gain and basis in his stock after the exchange?

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