Harrison and Julia form Iris Corporation. Harrison transfers property (basis of $400,000 and fair market value of $300,000) while Julia transfers land (basis of $150,000 and fair market value of $280,000) and $20,000 of cash. Each receives 50% of Iriss stock. As a result of these transfers:

a. Harrison has a recognized loss of $100,000, and Julia has a recognized gain of $130,000.

b. Neither Harrison nor Julia has any recognized gain or loss.

c. Harrison has no recognized loss, but Julia has a recognized gain of $130,000.

d. Iris Corporation will have a basis in the land of $280,000.

e. None of the above.

26. Phillip transfers land worth $300,000, basis of $200,000, to a newly formed corporation, Peony Corporation, for all of Peonys stock, worth $250,000, and a 10-year note. The note was executed by Peony and made payable to Phillip in the amount of $50,000. As a result of the transfer:

a. Phillip does not recognize gain.

b. Phillip recognizes gain of $50,000.

c. Peony Corporation has a basis of $200,000 in the land.

d. Peony Corporation has a basis of $300,000 in the land.

e. None of the above.

27. Pamela and Amanda form Pansy Corporation. Pamela transfers land (basis of $40,000 and fair market value of $90,000) for 50 shares plus $10,000 cash. Amanda transfers $80,000 cash for 50 shares in Pansy Corporation.

a. Pamelas basis in the Pansy Corporation stock is $40,000.

b. Pansy Corporations basis in the land is $40,000.

c. Pansy Corporations basis in the land is $90,000.

d. Pamela recognizes a gain on the transfer of $50,000.

e. None of the above.