T was one of several individuals who transferred property to a new corporation in a section 351 exchange.
T transferred the following property:
Basis/FMV
Accounts receivable 0/20,000
Machinery (D/recap = $10,000) 20,000/50,000
Capital Asset (LT H/P) 50,000/30,000
Total 70,000/100,000
As part of the exchange, the corporation assumed T's business liabilities in the amount of $25,000 and distributed T the following:
>$20,000 worth of securities
>$41,250 worth of common stock
>13,750 worth of preferred stock
Prepare a schedule showing the tax consequences to T and to the transferee corporation of the above transaction.