$2.$ Consider whether the following transactions qualify under Section $351.$

A$.$ A and B are unrelated individuals. A forms Newco, Inc. on January $2$nd of the current year by transferring a capital asset with a basis of $$10,000$ and a value of $$50,000$ for all $50$ shares of Newco common stock. On March $2$nd$,$ in an unrelated transaction, B transfers a capital asset with a basis of $$1,000$ and a value of $$10,000$ for $10$ shares of Newco nonvoting preferred stock.