Sandy performs legal service as part of the organization of a corporation. In exchange, Sandy receives 10% of the corporate stock, which has a fair market value of $20,000, and a par value $250. The other shareholders, part of a prearranged plan all transfer property for 90% of corporate stock.

A) How Much income, if any does Sandy recognize?

B) What is Sandy's tax basis in her corporate stock?

C) What are the tax consequences to the corporation upon the issuance of stock (i. e. deductible immediately, late, amortizable, etc) ?