Paul, Lana, and Gerry form Red Corporation. Paul contributes land (a capital asset) having a $9,000 adjusted basis and a $13,000 fair market value (FMV) to Red in exchange for Red twenty-year notes having a $13,000 face value. Lana contributes equipment (Sec. 1231 property) having a $19,000 adjusted basis and a $27,000 FMV for 25 shares of Red stock. She previously claimed $5,500 of depreciation on the equipment. Gerry contributes $20,000 cash for 25 shares of Red stock. Requirement a. What are the amount and character of Paul's, Lana's, and Gerry's recognized gains or losses? (Complete all input fields. If the is no gain or loss enter a 0 in the amount column and select "No gain or loss" in the Character column.) Amount of Gain or Loss Character of Gain or Loss Paul Lana Gerry Requirement b. What basis do Paul, Lana, and Gerry take in the stock or notes they receive? Enter the basis amount, then select whether this amount is for notes or stock received. Basis Stock or Notes received Paul Lana Gerry Requirement c. What basis does Red take in the land and equipment? What happens to the $5,500 of depreciation recapture potential on the equipment? Red Corporation's basis in the land is Red Corporation's basis in the equipment is What happens to the $5,500 of depreciation recapture potential on the equipment? A. The $5,500 recapture potential is inherited by Red because Lana recognizes a gain on the asset transfer. B. The $5,500 recapture potential is a deferred gain to Lana because Red assumed the asset transfer. C. The $5,500 recapture potential is inherited by Red because Lana does not recognize a gain on the asset transfer. D. The $5,500 recapture potential is not important after the transfer because Lana does not recognize a gain on the asset transfer.