Four individuals form Chickadee Corporation under § 351.Two of these individuals, Jane and Walt, made the following contributions: Both Jane and Walt receive stock in Chickadee Corporation equal to the value of their investments.
A)Jane must recognize income of $40,000; Walt has no income.
B)Neither Jane nor Walt recognize income.
C)Walt must recognize income of $130,000; Jane has no income.
D)Walt must recognize income of $100,000; Jane has no income.
E)None of these.

Question

Four individuals form Chickadee Corporation under § 351.Two of these individuals, Jane and Walt, made the following contributions:  Both Jane and Walt receive stock in Chickadee Corporation equal to the value of their investments.
A)Jane must recognize income of $40,000; Walt has no income. 
B)Neither Jane nor Walt recognize income. 
C)Walt must recognize income of $130,000; Jane has no income. 
D)Walt must recognize income of $100,000; Jane has no income. 
E)None of these.

Quizplus · Accepted Answer

The Answer of Four individuals form Chickadee Corporation under § 351.Two of these individuals, Jane and Walt, made the following contributions:  Both Jane and Walt receive stock in Chickadee Corporation equal to the value of their investments.
A)Jane must recognize income of $40,000; Walt has no income. 
B)Neither Jane nor Walt recognize income. 
C)Walt must recognize income of $130,000; Jane has no income. 
D)Walt must recognize income of $100,000; Jane has no income. 
E)None of these.

Four Individuals Form Chickadee Corporation Under § 351