Mark and Lisa form new corporation - MARSH. Mark has the building - Basis $100,000 in building:

Fair market value $700,000. He exchanges building for 70% of stock of MARSH. Lisa agrees to provide services worth 300,000 and gets 30% of the stock of MARSH. Mark "GAIN RECOGNIZED" is

1) $300,000 2) $600,000 3) $700,000 4) $-0- 5) None of the above