Service Shareholders. During the year, R and S formed C Corporation. For each of the following independent situations, indicate whether 351 applies tothe exchange.

1. R contributed property worth $70,000 (basis $50,000) in exchange for 70 shares of stock, and S contributed services worth $30,000 in exchange for30 shares of stock.
2. R contributed property worth $70,000 (basis $50,000) in exchange for 70 shares of stock, and S contributed services worth $25,000 for 25 shares of stock in addition to property worth $5,000 for 5 shares of stock.
3. R contributed property worth $70,000 (basis $50,000) in exchange for 70 shares of stock, and S contributed services worth $29,000 for 29 shares in addition to cash of $1,000 for 1 share.