Rob and Sharon Form Swallow Corporation with the Following Consideration

Rob and Sharon form Swallow Corporation with the following consideration:

Each receives 50% of Swallow's stock.In addition,Sharon receives cash of $40,000.One result of these transfers is that Sharon has a:

A) Recognized loss of $60,000.
B) Recognized loss of $20,000.
C) Basis of $460,000 in the Swallow stock (assuming Swallow reduces its basis in the land to $440,000) .
D) Basis of $400,000 in the Swallow stock (assuming Swallow reduces its basis in the land to $440,000) .
E) None of the above.