Joe transferred the following assets to JH Corporation.

	Basis to Transferor		FMV
Cash	$120,000		$120,000
Machinery	$48,000		$36,000
Land	$108,000		$144,000

In exchange, Joe received 50% of JH Corporations only class of stock outstanding. The stock has no established value. However, all parties believe that the value of the stock Joe received is the equivalent of the value of the assets she transferred. The only other shareholder, Ethan, formed JH Corporation five years ago.

a. Joe has no gain or loss on the transfer.

b. JH Corporation has a basis of $48,000 in the machinery and $108,000 in the land.

c. JH Corporation has a basis of $36,000 in the machinery and $144,000 in the land.

d. Joe has a basis of $276,000 in the stock of JH Corporation. e. None of the above.