Four Individuals Form Chickadee Corporation Under § 351

question 89

Multiple Choice

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.

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Definitions:

Brand

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Product Service

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Maker

An individual or entity that creates or manufactures something, often in the context of crafts, technology, or industrial production.

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