Lucas transfers investment land to a corporation as part of a Section 351 transaction. The land has a fair market value of $75,000, an adjusted basis of $30,000, and is encumbered by a mortgage (from its original purchase 5 years ago by Lucas) of $40,000 that the corporation assumes. In exchange for the land, the corporation issues stock to Lucas worth $35,000. How much gain does Lucas recognize, what is Lucass stock basis, and what is the basis of the land to the corporation, respectively?

Question options:

1)	$0 gain; $30,000 stock basis; $30,000 land basis

2)	$10,000 gain; $0 stock basis; $40,000 land basis

3)	$10,000 gain; $10,000 stock basis; $30,000 land basis

4)	$0 gain; $0 stock basis; $30,000 land basis