Jordan and Ava form Club Corporation with the following assets:

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........................................................................................From Jordan ...........From Ava

Cash.................................................................................$900,000

Building (basis of $300,000, FMV of.......................................................$390,000

$400,000) - Ava gets $10,000 cash

Land (basis of $200,000, FMV of $500,000)......................................$500,000

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Club issues stock equally to Jordan and Ava. One of the tax consequences of these transfers is:

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a. Ava has a recognized loss on the building of $100,000

b. Club has a basis in the building of $310,000.

c. Ava has a basis in the Club stock of $890,000.

d. Ava has a recognized gain on land of $300,000 but no recognized loss on the building.

e. None of these.