In year 1, Stone, a cash basis taxpayer, incorporated her CPA practice. No liabilities were transferred. The following assets were transferred to the corporation:

Cash (checking account) ....................$ 500
Computer equipment
Adjusted basis ...................................30,000
Fair market value ..............................34,000
Cost ....................................................40,000

Immediately after the transfer. Stone owned 100% of the corporation's stock. The corporation's total basis for the transferred assets is:

a. $30,000

b. $30,500 

c. $34,500

d. $40,500