F and G Formed a Corporation on March 1 This

F and G formed a corporation on March 1 this year.F transferred equipment worth $40,000 (basis $15,000) in exchange for 40 shares of stock, and performed services worth $10,000 in exchange for 10 shares of stock.In exchange for 50 shares of stock, G contributed land worth $70,000 (basis $9,000) subject to a mortgage of $20,000, which the corporation assumed.Due to the exchange, the corporation will report

A) Neither income nor deduction
B) Some amount of income but no amount of deduction
C) No income but some amount of deduction
D) Some amount of income and some amount of deduction