Dave formed Shull Company and transferred land ($100,000 fair market value; $40,000 adjusted basis) and equipment ($50,000 fair market value; $10,000 adjusted basis) in exchange for 100 shares of stock. Shull Company assumes the $45,000 mortgage on the land as part of the transfer. Dave's tax consequences are:
Recognized Basis in Gain 100 shares
a. $0 $50,000
b. $5,000 $0
c. $50,000 $60,000
d. $100,000 $100,000