Kelly, Tanya, and Barry form The Paint Corporation. Kelly transfers a building (A/B $40,000, FMV $100,000); Tanya invests $60,000 cash and performs services worth $15,000. Barry transfers equipment (A/B $50,000, FMV $25,000) and land (A/B $40,000, FMV $50,000). They each receive 50 shares in The Paint Corporation, and each share is worth $1,500. Kelly also receives $10,000 cash from the corporation. The corporation assumes a $15,000 debt that Kelly owes on the building. The $15,000 debt is for tax avoidance. (a) What is Kelly's recognized gain? QUESTION 7 Kelly, Tanya, and Barry form The Paint Corporation. Kelly transfers a building (A/B $40,000, FMV $100,000); Tanya invests $60,000 cash and performs services worth $15,000. Barry transfers equipment (A/B $50,000, FMV $25,000) and land (A/B $40,000, FMV $50,000). They each receive 50 shares in The Paint Corporation, and each share is worth $1,500. Kelly also receives $10,000 cash from the corporation. The corporation assumes a $15,000 debt that Kelly owes on the building. The $15,000 debt is for tax avoidance. (b) What is Kelly's stock basis