Corey contributed property with FMV of $100 and adjusted basis of $40 to a corporation in exchange for common stock.

1. 1. What would be Corey's and the corporations tax consequences (i.e., realized gain/loss and recognized gain/loss) upon the transfer?
3. 2. Whats the Congressional intent behind your answer (a)?

3. What would be Corey's tax basis in stock immediately after the transfer?

4. What would be the Corporations tax basis in the property immediately after the transfer?