3. Rick and Mark form Red Corporation. Rick transfers land (basis of $55,000 and fair market value of $180,000) for 80 shares plus $20,000 cash. Mark transfers $40,000 cash for 20 shares in Red Corporation. Which of the following statements is incorrect? a. Rick's basis in the Red Corporation stock is $55,000. b. Mark recognizes a gain on the transfer of $40,000 c. Mark's basis in Red Corporation is $40,000. d. Rick recognizes a gain on the transfer of $20,000. e. All the above are correct