Sam and Devon agree to go into business together selling college$-$licensed clothing. According to the agreement, Sam will contribute inventory valued at $$154,000$ in return for $80$ percent of the stock in the corporation. Sam's tax basis in the inventory is $$92,000.$ Devon will receive $20$ percent of the stock in return for providing accounting services to the corporation $($these qualify as organizational expenditures$).$ The accounting services are valued at $$38,500.$

Note: Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.

a$.$ What amount of income, gain, or loss does Sam realize on the formation of the corporation? What amount, if any, does Sam recognize?

Sam and Devon agree to go into business together selling college$-$licensed clothing. According to the agreement, Sam will contribute inventory valued at $$154,000$ in return for $80$ percent of the stock in the corporation. Sam's tax basis in the inventory is $$92,000.$ Devon will receive $20$ percent of the stock in return for providing accounting services to the corporation $($these qualify as organizational expenditures$).$ The accounting services are valued at $$38,500.$

Note: Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.

a$.$ What amount of income, gain, or loss does Sam realize on the formation of the corporation? What amount, if any, does Sam recognize?