Phillip transfers land worth $300,000, basis of $200,000, to a newly formed corporation, Peony Corporation, for all of Peony's stock, worth $250,000, and a 10-year note. The note was executed by Peony and made payable to Phillip in the amount of $50,000. As a result of the transfer:

a. Phillip does not recognize gain.

b. Phillip recognizes gain of $50,000.

c. Peony Corporation has a basis of $200,000 in the land.

d. Peony Corporation has a basis of $300,000 in the land.

e. None of the above.