Carl Transfers Land to Cardinal Corporation for 90% of the Stock

Carl transfers land to Cardinal Corporation for 90% of the stock in Cardinal Corporation worth $20,000 plus a note payable to Carl in the amount of $40,000 and the assumption by Cardinal Corporation of a mortgage on the land in the amount of $100,000.The land,which has a basis to Carl of $70,000,is worth $160,000.

A) Carl will have a gain on the transfer of $70,000.
B) Carl will have a gain on the transfer of $30,000.
C) Cardinal Corporation will have a basis in the land transferred by Carl of $70,000.
D) Cardinal Corporation will have a basis in the land transferred by Carl of $160,000.
E) None of the above.