In order to induce Rottweiler Corporation to build a new manufacturing facility in Helena, the city donates land $($fair market value of $$250,000)$ and cash of $$50,000$ to the corporation. Within several months of the donation, Rottweiler Corporation spends $$250,000($which includes the cash of $$50,000$ received from Helena$)$ on the construction of a new plant located on the donated land. Which of the following is correct?

Group of answer choices

Rottweiler must recognize income of $$50,000$ as to the donation.

Rottweiler will have a zero basis in the land and a basis of $$50,000$ in the plant.

Rottweiler must recognize income of $$300,000$ as to the donation.

Rottweiler will have a zero basis in the land and a basis of $$200,000$ in the plant.