LO.1, 3 Assume in Problem 41 that Jane receives the 50 shares of Osprey Corporation stock in consideration for the appreciated property and for the provision of accounting services in organizing the corporation. The value of Jane’s services is $35,000.

a. What gain or income does Jane recognize?

b. What is Osprey Corporation’s basis in the property transferred by Jane? How does Osprey treat the value of the services that Jane renders?