Question: Aaron transferred property worth $ 7 5 , 0 0 0 and services worth $ 2 5 , 0 0 0 to the BJ Corporation.

Aaron transferred property worth $75,000 and services worth $25,000 to the BJ Corporation. In exchange, he received stock in BJ valued at $100,000. Immediately after the exchange, Aaron owned 80% of the only class of outstanding stock. Which of the following is true with regard to Aarons treatment of this transaction?

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