Cubs Inc. was completely liquidated. In the exchange for his 20 percent interest, Ross received land with a fair market value of $200,000. Ross's basis in the Cubs stock was $100,000. The land had a basis to Cubs Inc. of $50,000. What amount of gain does Ross recognize in the exchange and what is his basis in the land he receives?

• No gain recognized and a basis in the land of $50,000.
• No gain recognized and a basis in the land of $100,000.
• $100,000 gain recognized and a basis in the land of $100,000.
• $100,000 gain recognized and a basis in the land of $200,000.