Kerby and helen form red corp. Kirby transfers property basis of $ 20,000 and value of $ 300,000 for 100 shares in red corp. helen transfers property of basis $ 40,000 and value of $ 280,000 and provides legal services in organizing the corporation. The value of her services is $ 20,000. in return helen receives 100 shares in red corp. with respect to the transfer

a) Kirby will recognize gain

b) helen will not recognize any gain or income

c) red corp will have a basis of $ 280,000 in the property acquired from helen

d) red will have a business deduction of $ 20,000

e) none of above