Earl and Mary form Crow Corporation. Earl transfers property, basis of $200,000 and value of $1,600,000, for 50 shares in Crow Corporation. Mary transfers property, basis of $80,000 and value of $1,480,000, and agrees to serve as manager of Crow for one year; in return Mary receives 50 shares of Crow. The value of Marys services is $120,000. With respect to the transfers:

a.	Mary will not recognize any gain or income.
b.	Mary will recognize gain or income of $120,000.
c.	Mary will recognize gain or income of $1,300,000.
d.	Mary will recognize gain or income of $1,420,000.