Three individuals form Skylark Corporation with the following contributions: Cliff, cash of $50,000 for 50 shares; Brad, land worth $20,000 (basis of $11,000) for 20 shares; and Ron, cattle worth $9,000 (basis of $6,000) for 9 shares and services worth $21,000 for 21 shares.

a. These transfers are fully taxable and not exempt under IRC 351 because Rons stock received for services does not count toward the 80% control test.

b. Rons basis in his stock is $30,000.

c. Rons basis in his stock is $21,000.

d. Ron has income on the transaction of $21,000.

e. Brads basis in his stock is $20,000.