Lori, Nelson and Gina form Chrycy Corporation. Lori transfers land worth $80,000 (adjusted basis is $35,000) for 80 shares, Nelson transfers $40,000 cash for 40 shares and Gina transfers equipment worth $20,000 (adjusted basis is $16,000) and $20,000 of services for 40 shares. Gina's tax consequences are:

Recognized Gain Basis in 40 shares

a. $20,000 $36,000

b. $20,000 $16,000

c. $20,000 $40,000

d. $0 $36,000