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