SU Moodle 3.9 Question 20 Not yet answered Points out of 2.00 Flag question Nancy contributed $50,000 of cash and land with a fair market value of $100,000 and an adjusted basis of $50,000 to Kale, Inc. (an S corporation) when it was formed. The land was encumbered by a $30,000 mortgage. What is Nacy's tax basis in Kale, Inc. after formation? (Assume the liability includes no personal indebtedness and that the control requirement is met for purposes of Sec. 351) Select one: O A. $100,000 O B. $150,000 O C. $70,000 O D. $40,000