26 a,b

Jack exchanges property worth $100,000 ( $30,000 basis) for 70% of the stock. Janet owned 100% of the company before the company transferred 70% to Jack for his property. Immediately after the transfer, Jack and Janet own 100% of the company. This is a 351 since they have more than 80 percent control. Select one: True False A shareholder agrees to render services for stock in a corporation. The corporation can never take a deduction for these services as they do not report gain on the sale of their stock. Select one: True False