Carl transfers land to Cardinal Corporation for 90% of the stock in Cardinal Corporation worth $20,000 plus a note payable to Carl in the amount of

$40,000 and the assumption by Cardinal Corporation of a mortgage on the land in the amount of $100,000. The land, which has a basis to Carl of

$70,000, is worth $160.000.

Oa. Carl will have a recognized gain on the transfer of $70,000.

Ob. Cari will have a recognized gain on the transfer of $90,000.

Oc. Cardinal Corporation will have a basis of $70,000 in the land transferred by Carl.

Od. Cardinal Corporation will have a basis of $160,000 in the land transferred by Carl.