Matthew and Gabriella form Epsilon Corporation. Matthew transfers property (basis of $50,000 and fair market value of $40,000) while Gabriella transfers land (basis of $25,000 and fair market value of $30,000) and $10,000 in cash. Each receives 50% of Epsilon Corporation's stock, which is worth a total of $80,000. As a result of these transfers:

		None of the above
		Matthew has no recognized loss, but Gabriella a recognized gain of $10,000.
		Epsilon Corporation will have a basis in the land of $30,000.
		Neither Matthew nor Gabriella has any recognized gain or loss.
		Matthew has a recognized loss of $10,000, and Gabriella has a recognized gain of $15,000.