George and Mary form Crow Corporation. George 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 Mary's services is $$120,000.$ With respect to the transfers:

Question $4$ options:

Crow Corporation has a basis of $$1,480,000$ in the property it received from Mary.

Crow will have a business deduction of $$120,000$ for the value of the services Mary will render.

Mary will not recognize gain or income.

George will recognize a gain of $$1,400,000.$