A shareholder transfers machinery (basis $80,000 and fair market value $70,000) and cash of $20,000 in exchange for 85% of a corporations stock (worth $45,000) and property (basis $25,000 and fair market value $60,000). What is the shareholders basis after the exchange?

A. $55,000

B. $100,000

C. $85,000

D. $40,000