Hakim transfers land with a basis of $40,000 to Blue Corporation in exchange for 100% of Blue's stock. At the date of the transfer, the land had a $30,000 fair market value. Absent an election by Hakim, Blue's basis in the land is : ___________


a. $30,000.

b. $35,000.

c. $40,000.

d. none of the above