Dawn was a sole proprietor engaged in a service business and reported income on a cash basis. Last year Dawn incorporated her business and transferred the assets, including all of the receivables, of the business to the corporation in return for all of the stock in the corporation plus the corporations assumption of the liabilities of the proprietorship, including all of the unpaid trade payables. The assets of the proprietorship had basis of $105,000 and FMV of $300,000. The trade accounts payable totaled $25,000. There was a note payable to the bank in the amount of $95,000, used to buy business equipment, among the liabilities the corporation assumed. Which of the following is true?

a. Dawn has a gain on the transfer of $15,000

b. The basis of the assets to the corporation is $300,000

c. Dawn has a basis of $10,000 in the stock she receives

d. Dawn has a zero basis in the stock she receives

e. None of the above.