Tom and Grace are the sole owners of Super Corporation. Tom owns 40% of the stock and Grace owns 60%. Several years after the creation of the corporation, Tom contributes an additional $40,000 in cash and Grace contributes additional property with a fair market value of $60,000 and an adjusted basis of $50,000.

What amount of income is recognized by Super Corporation as a result of these contributions?

• $90,000

• 

  $10,000

• $50,000

• $0