1. Alexis transferred the following assets that she used in her sole proprietorship to Algonquin Corporation. Cash: FMV = $60,000; Adjusted Basis = $60,000 Machinery: FMV = $18,000; Adjusted Basis = $24,000 Land: FMV = $74,000; Adjusted Basis = $54,000 In exchange, Alexis received 5,000 shares of Algonquin Corporation's stock. The value of the stock that Alexis received is equivalent to the value of the assets she transferred. Alexis and Roberto formed Algonquin Corporation three years ago. At that time, Alexis and Roberto each received 2,500 shares of Algonquin Corporation stock. Since Algonquin's formation, no other shares of stock have been issued. a) Algonquin Corporation has a basis of $18,000 in the machinery and $74,000 in the land. b) Alexis has a recognized gain on the land of $20,000, and no recognized loss. C) Algonquin Corporation has a basis of $24,000 in the machinery and $74,000 in the land. d) Alexis has no recognized gain or loss on the transfer. e) Algonquin Corporation has a basis of $24,000 in the machinery and $54,000 in the land