Shareholder J contributes equipment with a basis of $80,000 and a fair market value of $200,000 to R Corporation. The property being transferred is subject to a $45,000 loan that was taken out 2 years ago to purchase the equipment. In exchange for the contributed property, R issues shares worth $155,000 and assumed liability for the equipment loan. What is Js basis in her R shares?

a. $120,000 b. $80,000 c. $35,000 d. $75,000