George and Nancy form EB Corporation. George transfers land

$($

basis of $

$1$

$0$

$0$

$$and fair market value of $

$1$

$1$

$0$

$)$

$$for

$1$

$0$

$$shares plus $

$1$

$0$

$$cash$.$ Nancy transfers $

$5$

$$cash for

$2$

$$shares in EB Corporation.

Which of the following statements is correct?

$[$

Hints: about recognized gain and stock basis

$]$