James transferred land ($100,000 fair market value; $40,000 adjusted basis) and equipment ($50,000 fair market value; $10,000 adjusted basis) in exchange for 100 shares of stock from Shull company. Shull Company assumes the $45,000 mortgage on the land as part of the transfer. James's tax consequences are: What is the basis for the land and equipment of Shull company, respectively?

a. 40,000 and 50,000

b.10,000 and 40,000

c. 100,000 and 50,000

d.