Chip has an accrual$-$method, calendar$-$year sole proprietorship. On January $1,2019,$ he creates accrual$-$method, calendar$-$year corporation and transfers to corporation, in exchange for all of corporation$$s stock$(1$ class$),$ a single asset as follows:

Asset $($depreciable personality$)$:

Original Cost $$100,000$

Adjusted Basis $$30,000$

Value $$250,000$

Holding period $=7$ years

Determine the tax consequence to:

$1.$ Chip

$2.$Corporation