Tara Incorporates Her Sole Proprietorship, Transferring It to Newly Formed

Tara incorporates her sole proprietorship, transferring it to newly formed Black Corporation.The assets transferred have an adjusted basis of $240,000 and a fair market value of $300,000.Also transferred was $10,000 in liabilities, $1,000 of which was personal and the balance of $9,000 being business related.In return for these transfers, Tara receives all of the stock in Black Corporation.

A) Black Corporation has a basis of $241,000 in the property.
B) Black Corporation has a basis of $240,000 in the property.
C) Tara's basis in the Black Corporation stock is $241,000.
D) Tara's basis in the Black Corporation stock is $249,000.
E) None of the above.