Phil Forms the Elm Corporation During 2011

Phil forms the Elm Corporation during 2011.He transfers property with a fair market value of $550,000 to Elm Corporation in exchange for 100 percent of the stock in the corporation.Phil's basis in the property transferred was $250,000 and the corporation assumed a $150,000 mortgage on the property.If the fair market value of the stock received by Phil is $400,000,what is the corporation's basis in the property received from Phil and what is Phil's basis in the stock?

A) $100,000 and $100,000
B) $250,000 and $150,000
C) $400,000 and $550,000
D) $100,000 and $400,000
E) $250,000 and $100,000