From your Readings in IRS Pub $542$ answer the following question:

You transfer property worth $$35,000$ and render services valued at $$3,000$ to a corporation in exchange for stock valued at $$38,000.$ Right after the exchange, you own $85\%$ of the outstanding stock. No gain is recognized on the exchange of property. PIck the Correct statement....

Group of answer choices

However, you recognize ordinary income of $$3,000$ as payment for services you rendered to the corporation.

However, you recognize ordinary income of $$1,500$ as payment for services you rendered to the corporation.

Also, you recognize no ordinary income from the payment for services you rendered to the corporation.

There's nothing more to say.