What is the shareholder’s basis in stock of a corporation received as a result of the transfer of property to the corporation and as a result of which gain was recognized by the stockholder?

a. The shareholder’s basis is equal to the basis of the property transferred less the gain.
b. The shareholder’s basis is equal to the fair market value of the stock received, less any liabilities transferred by the stockholder.
c. The shareholder’s basis is equal to the basis of the property transferred to the corporation, minus any liabilities transferred by the shareholder, plus the gain.
d. The shareholder’s basis is equal to the basis of the property transferred to the corporation, plus any liabilities transferred by the shareholder.
e. None of the above.