1.) Kathleen Korren transfers to her controlled corporation property with an adjusted basis of $10,000 in exchange for stock of the corporation with

1.) Kathleen Korren transfers to her controlled corporation property with an adjusted basis of $10,000 in exchange for stock of the corporation with a fair market value of $8,000, $3,000 cash, and the assumption by the corporation of indebtedness of Kathleen amounting to $4,000.