Problem 18-36 (c) (LO. 1, 3) Ervin and Hyatt form Hendrix Corporation. Ervin transfers property (basis of $360,000 and value of $440,000) for 75 shares in Hendrix Corporation. Hyatt transfers property (basis of $215,000 and value of $300,000) and agrees to serve as manager of Hendrix for one year; in return, Hyatt receives 75 shares in Hendrix. The value of Hyatt's services to Hendrix is $140,000. If an amount is zero, enter "O". a. Ervin recognizes $ gain on the transfer. Hyatt has income of $ b. What is Hendrix Corporation's basis in the property transferred by Ervin and Hyatt? How does Hendrix treat the value of the services that Hyatt renders? Hendrix Corporation has a basis of $ in the property it acquires from Ervin and a basis of in the property it acquires from Hyatt. It has a for the value of the services Hyatt renders. Problem 18-36 (C) (LO. 1, 3) Ervin and Hyatt form Hendrix Corporation. Ervin transfers property (basis of $360,000 and value of $440,000) for 75 shares in Hendrix Corporation. Hyatt transfers property (basis of $215,000 and value of $300,000) and agrees to serve as manager of Hendrix for one year; in return, Hyatt receives 75 shares in Hendrix. The value of Hyatt's services to Hendrix is $140,000. If an amount is zero, enter "O". a. Ervin recognizes $ gain on the transfer. Hyatt has income of $ b. What is Hendrix Corporation's basis in the property transferred by Ervin and Hyatt? How does Hendrix treat the value of the services that Hyatt renders? > Hendrix Corporation has a basis of $ In the property it acquires from Ervin and a basis of in the property it acquires from Hyatt . It has a for the value of the services Hyatt renders. business deduction capital expenditure non-deductible expense