During the year, Yasmine transferred land with an adjusted basis of $40,000 and a fair market value of $95,000 to Nadir Corporation in exchange for 100% of Nadir Corporation's only class of stock. The land was subject to a liability of $45,000, which Nadir Corporation assumed. The fair market value of Nadir Corporation's stock at the time of the transfer was $50,000. What amount of gain must Yasmine recognize and what is her basis in the Nadir Corporation stock?

A.$5,000 recognized gain, $0 basis.

B.$55,000 recognized gain, $95,000 basis.

• C.$0 recognized gain, $40,000 basis.

• D.$5,000 recognized gain, $45,000 basis.