Terry forms the Camphor Corporation during the current year. She transfers property with a value of $700,000 to Camphor Corporation in exchange for 100 percent of the stock in the corporation. Terry's basis in the property transferred was $400,000 and the corporation assumed a $275,000 mortgage on the property. If the fair market value of the stock received by Terry is $425,000, what is the corporation's basis in the property received from Terry?

a. $700,000

b. $450,000

c. $125,000

d. $275,000

e. $400,000