Vanessa Contributed $20,000 of Cash and Land with a Fair

Vanessa contributed $20,000 of cash and land with a fair market value of $100,000 and an adjusted basis of $40,000 to Cook, Inc.(an S corporation) when it was formed.The land was encumbered by a $30,000 mortgage executed two years before.What is Vanessa's tax basis in her Cook, Inc., stock after formation?

A) $20,000.
B) $30,000.
C) $60,000.
D) $80,000.
E) $120,000.