Mackenzie incorporates her sole proprietorship, transferring it to newly formed Omega Corporation. The assets transferred have an adjusted basis of $300,000 and a fair market value of $400,000. Also transferred was $50,000 in liabilities, $5,000 of which was personal and the balance of $45,000 being business related. In return for these transfers, Mackenzie receives all of the stock in Omega Corporation.

		None of the above
		Omega Corporation has a basis of $305,000 in the property.
		Omega Corporation has a basis of $300,000 in the property.
		Mackenzie's basis in the Omega Corporation stock is $300,000.
		Mackenzie's basis in the Omega Corporation stock is $340,000.