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Ted transfers property with an adjusted basis of $50,000 and an FMV of $100,000 to a newly formed Morris Corporation in exchange for 500 shares of

Ted transfers property with an adjusted basis of $50,000 and an FMV of $100,000 to a newly formed Morris Corporation in exchange for 500 shares of Morris stock, which is one-half of the outstanding Morris stock. His daughter, Ivanka, transfers property with an adjusted basis of $25,000 and an FMV of $50,000 for the other 500 shares at the same time. What are the tax consequences of the two transfers, assuming all the requirements of Sec. 351 are met?

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