In 2018 , Sally transferred a building with an adjusted basis of \(\$ 40,000\) and a fair market value of \(\$ 45,000\) to Sandy Corporation. In exchange, she received the following: 1. 80 percent of Sandy Corporation's only class of stock, fair market value of \(\$ 20,000\) 2. Equipment with a fair market value of \(\$ 25,000\) and an adjusted basis of \(\$ 10,000\)

What is Sandy Corporation's basis in the building received in the transfer?

a. \(\$ 5,000\)

b. \(\$ 25,000\)

c. \(\$ 45,000\)

d. \(\$ 50,000\)

e. None of the above