Question $1$: Louis exchanges property having an $$19,000$ adjusted basis and a $$37,000$ fair market value for $70$ shares of the newly created Dog Corporation stock. Ann exchanges legal services worth $$16,000$ for the remaining $30$ shares of Dog Corporation's stock, which of the following is true?

a$)$ Ann recognizes no income, and the exchange is nontaxable.

b$)$ Ann must recognize $$16,000$ of income but Louis's transfer of property qualifies under IRC Sec. $351$ as nontaxable.

c$)$ Ann must recognize $$16,000$ of income and Louis must recognize $$18,000$ gain on the exchange.

d$)$ The exchange qualifies as a nontaxable exchange under IRC Sec. $351.$