From your Readings in IRS Pub 542 answer the following question: You and Sidd Jones buy property for $200,000. You both organize a corporation when the property has a fair market value of $350,000. You transfer the property to the corporation for all its authorized capital stock, which has a par value of $350,000. Pick the correct statement based on these facts:

You & Sidd each recognize $75,000 gain, none to the corporation

No gain is recognized by you, Sidd, or the corporation

No gain is recognized by you or Sidd. But the corporation recognizes $150,000 of

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