Freddie and Helen, individual taxpayers, form Georgia Corporation. Freddie transfers property (Equipment) (Adjusted Basis of $120,000 and Fair Market Value of $80,000) with a debt on the property of $70,000 while Helen transfers a parcel of Land (Adjusted Basis of $90,000 and Fair Market Value of $50,000) and $30,000 in Cash. Each receives fifty percent (50%) of Georgia Corporation's stock which is worth a total of $80,000. As a result of these transfers, which of the following is correct?

		Freddie has a Recognized Gain of $50,000 but Helen has no Recognized Loss.
		Neither Freddie nor Helen have any Recognized Gain or Recognized Loss.
		Freddie has a Recognized Gain of $50,000 and Helen has a Recognized Loss of $40,000.
		Georgia Corporation will have a basis in the Land of $120,000.