Seoyun and Nicole form Indigo Corporation with the following transfers: inventory from Seoyun (basis of $36,000 and fair market value of $400,000 ) and improved real estate from Nicole (basis of $330,000 and fair market value of $385,000 ). Nicole, an accountant, agrees to contribute her services (worth $25,000 ) in organizing Indigo. The corporation's stock is distributed equally to Seoyun and Nicole. Seoyun received common stock, and Nicole received nonqualified preferred stock. As a result of these transfers: Indigo can dedact 525,000 as a business expense None of the other choices are correct. Indigo has a basis of $360,000 in the inventory. Nicole has a recognized gain of 555,000 on the iransfer of the real estate. Indigo has a basis of $375,000 in the real estate