On July 1, 2016, Mr. Grey formed Dover Corporation. The same date Grey paid $100,000 cash and transferred property with an adjusted basis of $50,000 to Dover in exchange for 3,000 shares of its common stock. The property had a fair market value of $85,000 on the date of the exchange. Dover had no other shares of common stock outstanding on July 1, 2016. As a result of the above transaction, Grey's basis in his stock and Dover's basis in the property, respectively, are:
A. $185,000 and $85,000
B. $150,000 and $85,000
C. $150,000 and $50,000
D. $185,000 and $50,000