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, 2023. Bruce transfers his property for 400 shares of the stock on Jan. 12, 2023. Connie transfers her property for 300 shares of the stock on March 6, 2023. 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

Jean and Katherine form Newcorp. They transfer appreciated property and get back 50 shares each of Newcorp. stock. Shortly after this exchange, Jean gives 25 shares to her son. She was not obligated to do this before the exchange. What result?

a.	Jean and Katherine must recognize gain on the exchange because they failed to achieve control of the corporation.	c.	Jean and Katherine do not recognize any gain on the exchange because Section 351 applies.
b.	Jean and Katherine must recognize gain on the exchange because the son is a related party to one of the transferors.	d.	None of these.

Assume the same facts as the preceding question. What is Janes basis in the stock she received?

a.	$30,000	c.	$70,000
b.	$10,000	d.	$50,000