Adam transfers cash of $300,000 and land worth $200,000 to Camel Corporation for 100% of the stock in Camel. In the first year of operation, Camel has net taxable income of $70,000. If Camel distributes $50,000 to Adam,
Adam has taxable income of $50,000.
Camel Corporation has a tax deduction of $50,000.
Adam has no taxable income from the distribution.
Camel Corporation reduces its basis in the land to $150,000.
None of the above