On July 1, 2016, Mr. Grey formed Dover Corporation. The same date Grey paid $100,000 cash and transferred property with an adjusted basis of $50,000 to Dover in exchage for 3,000 shares of its common stock. The property had a fair market value of $85,000 on the date of the exchange. Dover had no other shares of common stock outstanding on July, 1, 2016. As a result of the above transaction, Grey's basis in his stock and Dover's basis in the property are:

a. $185,000 and $85,000

b. $150,000 and $85,000

c. $150,000 and $50,000

d. $185,000 and $50,000