Abel, Iris, and Helga get together to form a new corporation. Abel contributes the land and building for their operations with basis of $140,000 and...

Abel, Iris, and Helga get together to form a new corporation. Abel contributes the land and building for their operations with basis of $140,000 and value of $220,000. Iris contributes managerial services worth $200,000 and $20,000 worth of office furniture and fixtures with basis of $3,000. Helga contributes $220,000 in cash. Each take 1,000 shares of stock in exchange for their contributions. Indicate what the true statements below.

A. Iris will be a part of the transferor group to determine if the transaction qualifies for §351 treatment.

B. This transaction does not qualify for §351 treatment

C. Helga will not recognize a gain whether or not §351 applies to this transfer.

D. Abel has a realized gain of $80,000

E. Iris must recognize compensation income of $220,000

F. All three shareholders will have the same amount of basis in their stock.