Tony recently acquired a 40% share in Walden Corporation. The value of the stock is $65,000. He received the shares in return for both a property and financial services he provided to Walden. These financial services were valued at $25,000. The fair market value and adjusted basis of the property to Tony is $40,000. What amount should Tony recognize as income on the exchange?

• A.
• $40,000
• B.
• $25,000
• C.
• $10,000
• D.
• $65,000