Select TWO Rhonda owns 50% of the stock of Peach Corporation. She and the other 50% shareholder, Rachel, have decided that additional contributions of capital are needed if Peach is to remain successful in its competitive industry. The two share-holders have agreed that Rhonda will contribute assets having a value of $200,000 (adjusted basis of $15,000) in exchange for additional shares of stock. After the transaction, Rhonda will hold 75% of Peach Corporation and Rachel's interest will fall to 25%. a. What gain is realized on the transaction? How much of the gain will be recognized? b. Rhonda is not satisfied with the transaction as proposed. How will the con-sequences change if Rachel agrees to transfer $1,000 of cash in exchange for additional stock? In this case, Rhonda would own slightly less than 75% of Peach, and Rachel's interest would be slightly more than 25%. c. If Rhonda still is not satisfied with the result, what should be done to avoid any gain recognition? d. Summarize your solution in an e-mail, and send it to your instructor