Three individuals form CBS Corporation with the following contributions: Connie - Cash of $50,000 for 50 shares Bryce - Land worth $20,000 (basis of $11,000) for 20 shares Sally - Machine worth $2,000 (basis of $500) and managerial services worth $28,000 for 30 shares Question 5 options: a) Bryce recognizes gain equal to $9,000. b) Sally recognizes no gain on the property transfer, but recognizes ordinary income equal to $28,000. c) Bryce's basis in his stock received is $11,000. d) Only responses a. and b. are correct