Mr$.$ L transferred the following assets and liabilities to Corporation K:

Adjusted

Basis

Fair Market

Value

Building

$$10,000$

$$60,000$

Mortgage on building

$40,000$

$40,000$

Truck

$5,000$

$10,000$

Machine

$20,000$

$15,000$

In the exchange, Mr$.$ L received $95\%$ of K$$s only class of outstanding stock. What is K$$s total basis in the assets received, assuming that Mr$.$ L properly recognized the true amount of gain on the exchange?

A$.$

$$35,000$

B$.$

$$40,000$

C$.$

$$45,000$

D$.$

$$85,000$