Bill decided to incorporate his printing business and to give his manager, Charlie, a share in the business. Bill's sole proprietorship transferred the following to Tom Co.:

Bill received 70 shares of the stock, worth \(\$ 29,000\). Charlie invested \(\$ 2,000\) in cash and received the remaining 30 shares of the stock.
What are the tax consequences to Bill, Charlie, and Tom Co.?

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Accounts payable Accounts receivable Printing press Truck Cash Basis $0 0 Value $7,000 8,000 6,000 10,000 24,000 20,000 2,000 2,000