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.

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

b. Carl will have a recognized gain on the transfer of $30,000.

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

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

e. None of the above.