Kevin and Nicole form Indigo Corporation with the following transfers: inventory from Kevin (basis of $360,000 and fair market value of $400,000) and improved real estate from Nicole (basis of $320,000 and fair market value of $375,000). Nicole, an accountant, agrees to contribute her services (worth $25,000) in organizing Indigo. The corporation's stock is distributed equally to Kevin and Nicole. As a result of these transfers:
a. Indigo can deduct $25,000 as a business expense
b. Nicole has a recognized gain of $55,000 on the transfer of the real estate
c. Indigo has a basis of $360,000 in the inventory
d. Indigo has a basis of $375,000 in the real estate
e. None of the above