Heather and Howie form HH Company. In exchange for 50% of the stock, Heather contributes cash of $7,000 (basis of $10,000). Which of the following statements is correct?

LessOn orporation has taxable income before DRD of $174,000. Includ mount is a dividend of $20,000 from a large publicly-traded tic corporation. Red also made a $25,000 cash contribution to d charitable organization. The contribution is not included me amount given. What is taxable income of Red Corpor $135,000 $140,600