Individuals Terry and Jim form TJ Corporation. Terry transfers cash of $930,000 in exchange for 50% of the stock of the TJ Corporation worth $900,000 and a $30,000 note. Jim transfers equipment with a $890,000 adjusted basis and a $930,000 FMV for 50% of the stock worth $900,000 and a note of the TJ Corporation valued at $30,000. The basis of the equipment to TJ Corporation is
A) $890,000.
B) $920,000.
C) $940,000.
D) $960,000.
B) $920,000.
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