Rhonda and Marta form Blue Corporation. Rhonda transfers land (basis of $55,000 and fair market value of $180,000) for 50 shares plus $20,000 cash. Marta transfers $160,000 cash for 50 shares in Blue Corporation.

a. Rhondas basis in the Blue Corporation stock is $55,000. b. Blue Corporations basis in the land is $55,000. c. Blue Corporations basis in the land is $180,000. d. Rhonda recognizes a gain on the transfer of $125,000. e. None of the above.