35. Rachel owns 100% of the stock of Cardinal Corporation. In the current year Rachel transfers an installment obligation. tax basis of $180,000 and fair market value of $350,000, for additional stock in Cardinal worth $350,000. a. Rachel has a taxable gain of $180,000. b. Rachel has a taxable gain of $170,000. Since Rachel Owny loves the stull, she recy and m c. Rachel recognizes no gain on the transfer. Rachel has a basis of $350,000 in the additional stock she received in Cardinal Corporation. 36. Saleh, an accountant, is the sole shareholder of Turquoise Corporation, a C corporation. Turquoise is a personal service corporation with a fiscal year ending September 30 (pursuant to a 444 election). The corporation paid Saleh a salary of $330,000 during its fiscal year ending September 30, 2021. How much salary must Turquoise pay Saleh during the period October 1 through December 31, 2021, if the corporation is to continue to use its fiscal year without negative tax effects? a. $0 b. $27,500 c. $82,500 d. $247,500 37. Dwayne and Paul form Swan Corporation with the following investments. Dwayne transfers machinery (basis of $40,000 and fair market value of $100,000) and Paul transfers land (basis of $20,000 and fair market value of $90,000) nd services rendered (worth $10,000) in organizing the corporation. Each is issued 25 shares in Swan Corporation. With