Jane transfers property (basis of $150,000 and fair market value of $300,000) to Green Corporation for 100% of its stock and a long-term note (worth $75,000) executed by Green Corporation and made payable to Jane. As a result of the transfer:

Select one:

a.

Jane recognizes no gain.

b.

Green Corporation's basis in the property received from Jane is $225,000.

c.

Green Corporation's basis in the property received from Jane is $150,000.

d.

Jane recognizes a gain of $320,000.

e.

None of these.