Ann Transferred Land Worth $200,000 with a Tax Basis of $40,000

Multiple Choice

Ann transferred land worth $200,000 with a tax basis of $40,000 to Brown Corporation, an existing entity, for 100 shares of its stock. Brown Corporation has two other shareholders, Bill and Bob, each of whom holds 100 shares. With respect to the transfer:

A) Ann has no recognized gain.
B) Brown Corporation has a basis of $160,000 in the land.
C) Ann has a basis of $200,000 in her 100 shares in Brown Corporation.
D) Ann has a basis of $40,000 in her 100 shares in Brown Corporation.
E) None of these.