Jalen transferred his 10 percent interest to Wolverine Company as part of a complete liquidation of the company. In the exchange, he received land with a fair market value of $100,000. Jalen's basis in the Wolverine stock was $50,000. The land had a basis to Wolverine Company of $80,000. What amount of gain does Jalen recognize in the exchange and what is his basis in the land he receives?

Multiple Choice

• $50,000 gain recognized and a basis in the land of $80,000.
• No gain recognized and a basis in the land of $80,000.
• $50,000 gain recognized and a basis in the land of $100,000.
• No gain recognized and a basis in the land of $50,000.