Larry & son transferred a parcel of land (held as an investment) to Ajax in exchange for 50 percent of the Ajax stock (50 shares valued at $100,000). The land's fair market value was $120,000, and its adjusted tax basis to Larry & son was $50,000. The land was subject to a $20,000 mortgage that Ajax assumed on the transfer, which was treated as boot because the liability was assumed for tax-avoidance purposes. Larry & son recognized $20,000 of gain on the exchange. What is Larry & sons basis in the Ajax stock she received in the exchange?

(Provide explanation)