Alice Copper joins a group of sole proprietors in forming a corporation in a qualified Section 351 exchange. She contributes the properties listed below in exchange for her stock.

Asset	Basis	Value
Cash	$20,000	$20,000
Equipment	$20,000	$15,000
Inventory	$12,000	$15,000

Assuming there is no special election made between the corporation and the shareholder for basis adjustment by the shareholder, select the true statement from the list below.

options:

	a. Alice will have a basis of $52,000 in her stock and the corporation will have a $52,000 basis in the assets acquired from Alice.
	b. Alice will have a basis of $50,000 in her stock and the corporation will have a $52,000 basis in the assets acquired from Alice.
	c. Alice will have a basis of $52,000 in her stock and the corporation will have a $50,000 basis in the assets acquired from Alice.
	d. Alice will have a basis of $52,000 in her stock and the corporation will have a $47,000 basis in the assets contributed by Alice.