Problem: Ella and Raquel form a business entity with Ella contributing cash of $200,000 and Raquel contributing land which has a basis of $60,000 and a fair market value of $200,000. At the end of the first year of operations, the business entity has earned a profit of $40,000 and has outstanding liabilities of $50,000. Which of the following statements are correct? Group of answer choices If the entity is a partnership, Raquel's basis for her partnership interest at the end of the first year is $85,000. If the entity is an S corporation, Raquel's stock basis at the end of the first year is $60,000. If the entity is a C corporation, Raquel's stock basis at the end of the first year is $60,000. If the entity is an S corporation, Raquel's stock basis at the end of the first year is $85,000.