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Paula transferred equipment (with an FMV of $20,000 and adjusted basis to Paula of $15,000) and legal services (FMV of $10,000) to X Corp. for

Paula transferred equipment (with an FMV of $20,000 and adjusted basis to Paula of $15,000) and legal services (FMV of $10,000) to X Corp. for 85% of its outstanding stock. What is the amount of income Paula must recognize due to this transfer?

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