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Earl and Mary form Crow Corporation. Earl transfers property, basis of $200,000 and value of $1,500,000 for 50 shares in Crow Corporation Mary transfers property,
Earl and Mary form Crow Corporation. Earl transfers property, basis of $200,000 and value of $1,500,000 for 50 shares in Crow Corporation Mary transfers property, basis of $80,000 and value of 51,480,000, and agrees to serve as manager of Crow for one year; in return Mary receives 50 shares of Crow. The value of Mary's services is $120,000. With respect to the transfers: a. Crow will have a business deduction of $120,000 for the value of the services Mary will render b. Crow Corporation has a basis of $1.450.000 in the property it received from Mary c. Earl will recognize again of $1,400,000 d. Mary will not recognize gain or income e. None of these choices are correct
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