None of the above. 240.000. She agrees to accept Kay transfers property with a basis of S50,000 and fair market value of $240on 200 shares in Gull Corporation for the property and for providing bookk in its first year of operation. The value of Kay's services is SI0,000. With a. Gull Corporation has a basis of $240,000 in the property transferred b b. Neither Joe nor Kay recognizes gain or income on the exchanges. c. Gull Corporation has a business deduction under 162 of $10,000. d. Gull capitalizes $10,000 as organizational costs. 39. Joe and Kay form Gull Corporation. Joe transfers cash of S250,000 for 200 shar t to the transfer corporation in its first year of operation. The value of Kay's services is $10,000. With resp services tos e. None of the above. Four individuals form Chickadee Corporation under $351. Two of these made the following contributions: 40. Adjusted Fair Market From Jane- $360,000 Cash Patent $360,000 40,000 From Walt- 240,000 Equipment (depreciation claimed of $100,000) 370,000 Both Jane and Walt receive stock in Chickadee Corporation equal to the value of their investments a. Jane must recognize income of $40,000; Walt has no income. b. Neither Jane nor Walt recognize income. c. Walt must recognize income of $130,000; Jane has no income. d. Walt must recognize income of S100,000; Jane has no income. e. None of the above. 41. In order to induce Parakeet Corporation to build a new manufacturing facility in Oxford, Missisipi, the city donates land (fair market value of $250,000) and cash of S50,000 to the corporation. Within severa months of the donation, Parakeet Corporation spends $ from Oxford) on the construction of a new plant located on the donated land. a. Parakeet recognizes income of $50,000 as to the donation. b. Parakeet has a zero basis in the land and a basis of $350,000 in the plant. c. Parakeet recognizes income of S300,000 as to the donation. 350,000 (which includes the $50,000 received 10