In 2019, Norm, a carpenter whose tax rate is 30%, received a beach boat from the Newport Marina, which has a 35% ordinary tax rate and a 15% long term capital gain tax rate, in exchange for carpentry work to build a new, permanent dock, and Norm spent $12,000 on materials. Norm is going to use the boat to take pleasure cruises with his family. The dock was completed and went into service on November 8, 2019 and Norm was given the boat at that time. The beach boat cost the marina $41,000 and has a five year depreciable life. The marina purchased the boat on February 3, 2018, and put it into service that month for taking clients fishing, and it was the only depreciable asset put into service in 2018. The marina properly claimed depreciation of $4,100 in 2018 and took no Sec. 179 expense or bonus depreciation on it. The fair market value of the boat at the time it was transferred to Norm was $46,000. What are Norms tax effects from this transaction for 2019? What are the tax effects for Newport Marina for 2019? Be certain to show all necessary work and analyze all tax consequences related to these transactions for both parties. Compute depreciation.