In 2012 Ed Fran and George form Jet Corporation. Edcontributes land having a $35

In 2012 Ed Fran and George form Jet Corporation. Edcontributes land having a $35000 FMV purchased as an investment in2008 for $15000 in exchange for 35 shares of Jet stock. Francontributes machinery (Sec. 1231 property) purchased in 2008and used in her business in exchange for 35 shares of Jet stock.Immediately before the exchange the machinery had a $45000adjusted basis and a $35000 FMV. George contributions servicesworth $30000 in exchange for 30 shares of Jet stock.