6. Duncan forms Hopi Corporation, a C corporation, by transferring land with a basis of $165,000 (fair market value of $410,000) that is subject to a mortgage liability of S235,000. Two weeks prior to incorporating Hopi, Duncan borrows $20,000 to purchase an engagement ring. Hopi Corporation issues stock worth $155,000 to Duncan and assumes the two liabilities. a) Duncan recognizes gain equal to $70,000. b) Duncan recognizes gain equal to $245,000. Duncan recognizes gain equal to $255,000. d) Hopi Corporation's basis in the land transferred equals $410,000. e) Responses b. and d. are both correct