Martin Contributes Property with an Adjusted Basis of $100,000 and a Fair

Short Answer

Martin contributes property with an adjusted basis of $100,000 and a fair market value of $140,000 to a newly formed business entity. If the entity is an S corporation and the transaction qualifies under § 351, the S corporation's basis for the property and the shareholder's basis for the stock are:
E) None of the above.