Two shareholders transfer property to a corporation in exchange for 100% of the corporate stock. Shareholder #1 transfers property with a basis of $50,000 and a value of $80,000. Shareholder #2 transfers property with a basis of $30,000 and a value of $50,000 and services to the corporation with a value of $30,000.

SELECT ALL THE TRUE STATEMENTS FROM THE LIST BELOW!!

Only Shareholder 1's contribution is completely nontaxable.

Only Shareholder 2's contribution is completely nontaxable.

Both shareholders' contributions are tax free

Neither shareholder's contribution is tax free

Shareholder 2's contribution is partially taxable and partially non-taxable