Zip and Rick form Rug Corporation with the following investments. Zip transfers machinery (basis of $40,000 and fair market value of $100,000) and Rick transfers land (basis of $20,000 and fair market value of $90,000) and services rendered (worth $10,000) in organizing the corporation. Each is issued 25 shares in Rug Corporation. With respect to the transfers: Zip has no recognized gain, Rick recognizes income/gain of $80.000. O None of these Neither Zip nor Rick has recognized gain or income on the transfers. Rug Corporation has a basis of $30.000 in the land transferred by Rick. Rick has a basis of $30,000 in the 25 shares he acquires in Rug Corporation