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 the above.
Correct Answer:
Verified
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