Chris Transfers Land with a Basis of $40,000 to Webb

Multiple Choice

Chris transfers land with a basis of $40,000 to Webb Corporation in exchange for 100% of Webb's stock. At the date of the transfer, the land had a $30,000 fair market value. Absent an election by Chris, Webb's basis in the land is

A) $30,000.
B) $35,000.
C) $40,000.
D) none of the above