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5. Christina and Donielle form Raven Corporation, a C corporation. Christina transfers equipment worth $950,000...

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5. Christina and Donielle form Raven Corporation, a C corporation. Christina transfers equipment worth $950,000 (basis of $200,000) and cash of $50,000 to Raven Corporation in return for 50% of its stock. Donielle transfers a building and land worth $1,050,000 (basis of $400,000) in return for 50% of Raven's stock. In addition, Donielle receives $50,000 in cash. a) Christina recognizes a gain of S50,000: Donielle has no gain. Ob) Christina recognizes no gain: Donielle recognizes gain of $50,000. c) Christina recognizes a gain of $50,000: Donielle recognizes gain of S50,000. hy d) Christina recognizes a gain of $750,000: Donielle recognizes gain of $650,000. e) Neither Christina nor Donielle recognizes gain

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