Stacey, a cash basis taxpayer, incorporated her cpa practice. no liabilities were transferred. The following assets were transferred to the corporation:

cash $500

computer equipment

adjusted basis 30,000

fair market value 34,000

original cost 40,000

immediately after the transfer, stacey owned 100% of the corporation's stock. what is the corporations total basis for the transferred assets?

1. 30,000

2. 30,500

3. 34,500

4. 40,000