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, Incorporated (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, Incorporated, stock after formation?

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