d. Donghai has a basis of $276,000 in the stock of Starting Corporation sa basis of $36,000 in the machinery and $144,000 in the land 25. Rick transferred the following assets and liabilities to Warbler Corporatio Building Equipment Tracks Mortgage (held for four years) on building Adjusted Bass Exir Market Yala $210,000 $225,000 45,000 75,000 15,000 30,000 30,000 30.000 In return, Rick received $75,000 in cash plus 90% of Warbler Corporation's only class of stock outstanding (fair market value of $225,000), a. Rick has a recognized gain of $60,000. b. Rick has a recognized gain of $75,000. c. Rick's basis in the stock of Warbler Corporation is $270,000 d. Warbler Corporation has the same basix in the assets received as Rick does in the stock 26. Rhonda and Marta form Blue Corporation. Rhonda transfers land (hesis of $55,000 and fair market value of $180,000) for 50 shares plus $20,000 cash. Marta transfers $160,000 cash for 50 shares in Blue Corporation. a. Rhonda's basis in the Blue Corporation stock is $55,000. b. Blue Corporation's basis in the land is $55,000. c. Blue Corporation's basis in the land is $180,000 d. Rhonda recognizes a gain on the transfer of $125,000. 27. Gravel, Inc., eams book net income before tax of $600,000. Gravel puts into service a depreciable asset this year, and its first-year tax depreciation exceeds book depreciation by $120,000. Gravel has recorded no other temporary or permanent book-tax differences. Assuming that the applicable tax rate is 21%, what is Gravel's current income tax expense reported on its GAAP financial statements? a. $151,200 b. $126,000