Pamela and Amanda form Pansy Corporation. Pamela transfers land (basis of $40,000 and fair market value of $90,000) for 50 shares plus $10,000 cash. Amanda transfers $80,000 cash for 50 shares in Pansy Corporation.

a. Pamela's basis in the Pansy Corporation stock is $40,000.

b. Pansy Corporation's basis in the land is $40,000.

c. Pansy Corporation's basis in the land is $90,000.

d. Pamela recognizes a gain on the transfer of $50,000.

e. None of the above.