Wade and paul form swan corporation with the following investments. wade transfers machinery (basis of $40,000 and fair market value of $100,000), while paul transfers land (basis of $20,000 and fair market value of $90,000) and services rendered (worth $10,000) in organizing the corporation. each is issued 25 shares in swan corporation. with respect to the transfers: a. wade has no recognized gain; paul recognizes income/gain of $80,000. b. neither wade nor paul has recognized gain or income on the transfers. c. swan corporation has a basis of $30,000 in the land transferred by paul. d. paul has a basis of $30,000 in the 25 shares he acquires in swan corporation. e. none of the above.

Expert computers was started in 2018. the company experienced the following accounting events during its first year of operation: started business when it acquired $40,000 cash from the issue of common stock. purchased merchandise with a list price of $32,000 on account, terms 2/10, n/30. paid off one-half of the accounts payable balance within the discount period. sold merchandise on account for $28,000. credit terms were 1/20, n/30. the merchandise had cost expert computers $16,000. collected cash from the account receivable within the discount period. paid $2,100 cash for operating expenses. paid the balance due on accounts payable. the payment was not made within the discount period. required record the events in a horizontal statements model below. in the cash flows column, use the letters oa to designate operating activity, ia for investing activity, fa for financing activity, or nc for net change in cash. if the account is not affected by the event, leave the cell blank. the first event is recorded as an example. what is the amount of gross margin for the period? what is the net income for the period?