Q6 -Evan is the sole shareholder of Corporation. Evan transferred real estate to Corporation in exchange for all of the stock of Corporation. The real estate was a capital asset in Evans hands and will also be a capital asset when held by the corporation. Evans basis in the real estate was $10,000 and the value of the real estate was $8,000 on the date of the transfer. If Evan received $2,000 in cash and 100 shares of stock from the corporation in exchange for the real estate, the resulting bases for Evans stock and the corporations real estate are:

A-Evans stock basis is $10,000; Corporations basis in the real estate is $10,000

B-Evans stock basis is $6,000; Corporations basis in the real estate is $12,000