A Taxpayer Contributes Property with an Adjusted Basis of $35,000

A taxpayer contributes property with an adjusted basis of $35,000 and a fair market value of $60,000 to his business entity.If the entity is an S corporation and the trans?action qualifies under § 351, the S corporation's basis for the asset and the shareholder's basis for his stock are: $\begin{array}{lll}&\text { Asset Basis }&\text { Interest Basis }\\\text { a. } & \$ 35,000 & \$ 60,000 \\\text { b. } & \$ 60,000 & \$ 35,000 \\\text { c. } & \$ 35,000 & \$ 35,000 \\\text { d. } & \$ 60,000 & \$ 60,000\\\text { e. } &\text { None of the above. }\end{array}$