Tom and George Form Swan Corporation with the Following Investments

Tom and George form Swan Corporation with the following investments: Tom transfers machinery worth $100,000 (basis of $40,000) ,while George transfers land worth $90,000 (basis of $20,000) and services rendered in organizing the corporation worth $10,000.Each is issued 25 shares in Swan Corporation.With respect to the transfers:

A) Tom has no recognized gain; George recognizes gain of $80,000.
B) Neither Tom nor George recognizes gain.
C) Swan Corporation has a basis of $30,000 in the land.
D) George has a basis of $30,000 in the shares of Swan Corporation.
E) None of the above.