This year, Blue (an individual) transferred equipment worth $50,000 (basis = $40,000) to Color Corp. in exchange

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This year, Blue (an individual) transferred equipment worth $50,000 (basis = $40,000) to Color Corp. in exchange for 50% of Color Corp.'s stock, which is also worth $50,000. Red, an unrelated individual, owns the other 50% of Color Corp., which Red acquired many years ago. What is Blue's basis in her Color Corp. stock? Show calculations and briefly explain.