Jane and Mike are divorced in the current year. As part of the divorce settlement, Jane transfers a plot of land in Long Island, NY to Mike. Jane's basis in the property was $20,000 and the market value of the property was $250,000 when transferred. Mike holds the property through the end of the year and in hopes of building a residence on it. How much income do Jane and Mike recognize in the current year?

a. $0 for Jane and $20,000 for Mike

b. $230,000 for Jane and $20,000 for Mike

c. $230,000 for Jane and $0 for Mike

d. $0 for both Jane and Mike

e. $0 for Jane and $250,000 for Mike

Please show all computations and explain why you chose your answer. Thank you.