Jim and Cindy form JC Corporation, with each receiving 50 percent of the shares issued. Jim transfers land valued at $50,000 with a $40,000 basis for his stock, and Cindy transfers property valued at $45,000 with a basis of $50,000 for her stock. In addition, Cindy provides $5,000 of legal and accounting services in establishing the corporation. What are the tax consequences of the incorporation? What are Jim and Cindy's bases in their stock?