Carleton Corporation receives the assets below from Julius in a qualified Section 351 exchange.

Asset	Basis	Value
Cash	40000	40000
Securities	35000	45000
Equipment	30000	25000

Select the best answer from the list below.

Question options:

	Carleton takes a $30,000 basis in the equipment
	Carleton takes a $40,000 basis in the securities
	Carleton takes a $20,000 basis in the equipment.