Ivanka and Jared are divorced in the current year. As part of the divorce settlement, Ivanka transfers a plot of land in Long Island, NY to Jared. Ivanka’s basis in the property was $20,000 and the market value of the property was $250,000 when transferred. Jared holds the property through the end of the year and in hopes of building a residence on it. How much income do Ivanka and Jared recognize in the current year? 

a. $0 for Ivanka and $20,000 for Jared 

b. $230,000 for Ivanka and $20,000 for Jared 

c. $230,000 for Ivanka and $0 for Jared 

d. $0 for both Ivanka and Jared 

e. $0 for Ivanka and $250,000 for Jared