Fannie and Oisa, individual taxpayers, form Doll Corporation. Fannie transfers property (Equipment) (Adjusted Basis of $80,000 and Fair Market Value of $50,000) with a debt on the property of $60,000 while Oisa transfers a parcel of Land (Adjusted Basis of $50,000 and Fair Market Value of $30,000) and $40,000 in Cash. Each receives fifty percent (50%) of Doll Corporations stock which is worth a total of $60,000. As a result of these transfers, which of the following is correct?

1. Fannie has a Recognized Gain of $30,000 and Oisa has a Recognized Loss of $20,000
2. Fannie has a Recognized Gain of $20,000 but Oisa has no Recognized Loss
3. Neither Fannie nor Oisa have any Recognized Gain or Recognized Loss
4. Doll Corporation will have a basis in the Land of $90,000