Tony owns 100% of M corporation's single class of stock. Tony transfers land and a building having a $30,000 and $100,000 adjusted basis, respectively, to M corporation in exchange for additional M corporation common stock worth $200,000 and IBM stock worth $20,000. The IBM stock had a $5,000 basis on M corporation's books. Bill transfers $50,000 in cash for 15% of the M corporation common stock. What amount of gain is recognized by Tony and M corporation on the exchange?
a. $0 $0
b. $0 $15,000
c. $20,000 $0
d. $20,000 $15,000