Doreen Incorporates Her Sole Proprietorship, Transferring It to Newly Formed

Doreen incorporates her sole proprietorship, transferring it to newly formed Thistle Corporation.The assets transferred have an adjusted basis of $300,000 and a fair market value of $330,000.Also transferred was $30,000 in liabilities, $2,000 of which was personal and the balance of $28,000 being business related.In return for these transfers, Doreen receives all of the stock in Thistle Corporation.

A) Thistle Corporation has a basis of $270,000 in the property.
B) Thistle Corporation has a basis of $300,000 in the property.
C) Doreen's basis in the Thistle Corporation stock is $300,000.
D) Doreen's basis in the Thistle Corporation stock is $330,000.
E) None of the above.