Evan is the sole shareholder of Corporation. Evan transferred real estate to Corporation in exchange for all of the stock of Corporation. The real estate was a capital asset in Evan’s hands and will also be a capital asset when held by the corporation. Evan’s basis in the real estate was $10,000 and the value of the real estate was $8,000 on the date of the transfer. If Evan received $2,000 in cash and 100 shares of stock from the corporation in exchange for the real estate, the resulting bases for Evan’s stock and the corporations real estate are:
A. Evan’s stock basis is $8,000; Corporation’s basis in the real estate is $8,000
B. Evan’s stock basis is $10,000; Corporation’s basis in the real estate is $10,000
C. Evan’s stock basis is $10,000; Corporation’s basis in the real estate is $8,000
D. Evan’s stock basis is $6,000; Corporation’s basis in the real estate is $12,000