7. Adam, Blake, Alicia and Gwen form ABAG Corp., a C corporation, in a transaction that qualifies as a Section 351 transaction. Adam, Blake, and Alicia each transfer property, while Gwen performs managerial services. As part of the transaction, all 4 shareholders each receive shares of stock in ABAG Corp. The services contributed by Gwen have a fair market value of $50,000. How does the corporation treat the services contributed by Gwen? a) The corporation recognizes an intangible asset. b) The corporation recognizes compensation expense. c) The corporation has a basis in the services contributed equal $50,000. d) The corporation has a basis in the services contributed equal $0. O e) Responses b. and d. are both correct