True or False:

A transfers property worth $1,000 with a basis of $10 to form Corp. X.

B provides $1,000 of services to form Corp. X. C. A & B each receive 50% of the stock.

_______ a. As contribution is tax free to A

_______ b. Bs contribution is tax free to B

_______ c. Bs contribution is tax free to B if B also contributes property worth $10.

_______ d. In question 8 above, assume A was indebted to B for past compensation representing $1,000 of past services B performed for As proprietorship. A would recognize income of $1,000 if B receives her stock in payment for these services.