Yager and Boggs formed Y&B Company in the current year. Yager contributed a building with a fair market value of

$97,000, a mortgage of $75,000 and an adjusted basis of $50,000 in return for 22 shares of YX&B Company stock. (Y&B assumed the mortgage.) Boggs contributed land with a fair market value of $22,000 and an adjusted basis of $40,000 in return for 12 shares of YX&B Company stock and 10 $1,000 bonds. Lyle performed legal and accounting work during the incorporation process in return for six shares of stock.

Determine the tax consequences of the transfers to all parties.