On the formation of GHI Corporation, A receives 70 shares (70%) of GHI common stock by transferring ordinary income property with a basis of $10,000 and a FMV of $70,000, and B receives 30 shares (30%) of GHI stock by transferring $1,000 cash and performing managerial services with a FMV of $29,000. What is the amount and character, if any, of the gain recognized by A on the exchange?

Answer rating: 100% (QA)

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