Problem $8-43($LO $8-2)($Static$)$

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Ramona and Hermione formed Wiley Corporation on January $2.$ Ramona contributed cash of $$200,000$ in return for $50$ percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for $50$ percent of the corporation's stock:

$$FMVAdjusted Tax BasisBuilding$ $75,000$$ $20,000$Land$175,00080,000$Total$ $250,000$$ $100,000$

To equalize the exchange, Wiley Corporation paid Hermione $$50,000$ in addition to her stock.

Problem $8-43$ Part j $($Static$)$

j$.$ Assume Hermione's adjusted tax basis in the land was $$250,000.$

What election can Hermione and Wiley Corporation make to allow Wiley Corporation to take a carryover basis in the land?