11) Assume that John and Kevin want to incorporate a business. John performs services for the corporation and receives $20,000 worth of stock. Kevin transfers assets worth $80,000 and receives stock worth that much.

a.	John does not recognize any gain under Section 351	c.	John must include $20,000 in his taxable income
b.	Kevin must recognize gain since John does not have control of the corporation	d.	Kevin must recognize gain since he does not have control of the corporation

13. Alan, Bruce and Connie want to combine their property in a new corporate business. Alan transfers property for 300 shares of the new corporations stock on Jan. 6, 2022. Bruce transfers his property for 400 shares of the stock on Jan. 12, 2022. Connie transfers her property for 300 shares of the stock on March 6, 2022. If these exchanges occurred in accordance with a prearranged plan, then:

a.	Section 351 does not apply since any two of the shareholders do not have control of the corporation	c.	Section 351 does not apply because the shareholders waited too long to execute the property transfers and so do not have control of the corporation
b.	Section 351 applies to all the shareholders since, together, they own 100% of the stock and so have control of the corporation	d.	Section 351 would have applied if the transfers were not part of a prearranged plan