Naomi incorporates her Sole Proprietorship, transferring its assets to a newly formed Ceasar Corporation. The assets transferred have an Adjusted Basis of $100,000 and a Fair Market Value of $250,000. Also transferred was $30,000 in liabilities, $25,000 of which was for personal (non-business) purposes and the remaining $5,000 being business related. In return for these transfers, Naomi receives all of the stock in Ceasar Corporation. Which of the following is correct?

		Ceasar Corporation will have a basis of $130,000 in the property transferred.
		Naomi's basis in the Ceasar Corporation stock will be $125,000.
		Naomi's basis in the Ceasar Corporation stock will be $130,000.
		Ceasar Corporation will have a basis of $100,000 in the property transferred.