Mel, Fred, and Mary form Canary Corporation. Mel and Fred each contribute cash of $250,000, while Mary contributes land (basis of $100,000; fair market value of $300,000). Each transferor receives one-third of Canary's shares, and Mary also receives $50,000 in cash. Which, if any, of the following choices is a correct result of the incorporation?

a.Canary Corporation's basis in the land is $100,000.

b.Mary's basis in the Canary stock is $450,000.

c.Canary's basis in the land is $300,000.

d.Canary's basis in the land is $150,000.

e.None of these choices are correct.