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Burt and Tiffany form Owl Corporation. Burt transfers property (basis of $20,000 and fair market value of $130,000), while Tiffany agrees to serve as...

Burt and Tiffany form Owl Corporation.  Burt transfers property (basis of $20,000 and fair market value of $130,000), while Tiffany agrees to serve as Owl's manager for one year.  Each receives 100 shares of Owl Corporation stock.  The value of Tiffany's services for one year is $130,000. Which of the following is false?

        

A) Burt has a $110,000 recognized gain.

B) Burt has no recognized income.

C) Tiffany has a $130,000 basis in her stock..

D) Owl Corporation's basis in the property received from Burt is $130,000.

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D) Owl Corporation's basis in... View the full answer

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The false statement is A)... View the full answer

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