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Jason and Margaret form Sharon Woods Corporation. Jason transfers a building with a fair market value...

Jason and Margaret form Sharon Woods Corporation. Jason transfers a building with a fair market value of $1,250,000. The building has a tax basis in Jason's hands of $750,000. Margaret invests $1,000,000 in cash. The each receive 1000 shares in Sharon Woods Corporation worth $1,000,000 each. Jason also receives $250,000 in cash. Calculate any gain recognized by Jason or Margaret on the transaction. Also calculate Jason and Margaret's tax basis in the shares received and the basis of the building in the hands of Sharon Woods Corporation.

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