Assume that John and Nan form a corporation. John transfers a property (A/B $200, FMV = $1,000) for 100 shares. Nan contributes $50 and $950 worth of services to the corporation for 100 shares. Each share is worth $10.
(a) What is John's recognized gain? (If no gain, write 0)
(b) What is Nan's recognized gain?
(c) What is Nan's stock basis in the corporation?
(d) What is the corporation's basis in the property?
