Martin and Robert form Confection Corporation. Martin transfers equipment (basis of $210,000 and fair market value of $180,000) and Robert transfers land (basis of $15,000 and fair market value of $150,000) and $30,000 cash. Each receives 50% of Confection's stock. What happens as a result of these transfers?

Martin has a recognized loss of $30,000 and Robert has a recognized gain of $135,000.

Neither Martin nor Robert has any recognized gain or loss.

Martin has no recognized loss and Robert has a recognized gain of $30,000.

Confection Corporation has a basis in the land of $45,000.

None of the above