Rob and Fran Form Bluebird Corporation with the Following Investments

Rob and Fran form Bluebird Corporation with the following investments.
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Each receives 50% of Bluebird's stock. In addition, Fran receives cash of $40,000. One result of these transfers is that Fran has a:

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