Patrice and Esmeralda form Brook Corporation with the following transfers: inventory from Patrice (basis of $360,000 and fair market value of $400,000) and improved real estate from Esmeralda (basis of $320,000 and fair market value of $375,000). Esmeralda, an accountant, agrees to contribute her services (worth $25,000) in organizing Brook. The corporations stock is distributed equally to Patrice and Esmeralda. As result of these transfers:

	a.	Brook can deduct $25,000 as a business expense.
	b.	Esmeralda has a recognized gain of $55,000 on the transfer of the real estate.
	c.	Brook has a basis of $360,000 in the inventory.
	d.	Brook has a basis of $375,000 in the real estate.