Four Individuals Form Chickadee Corporation Under § 351

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.