7. Elmo Plumbfluglephone incorporated his accrual basis detective agency and transferred the following assets and liabilities to Elmo's On It, Inc. for 100 percent of its stock: Value Accounts receivable Accounts payable Office condominium Mortgage payable Adjusted Basis $7,000 3,000 30,000 44,000 $7,000 3,000 62,000 44,000 The following statements about the above incorporation are all false, except: a. Elmo must recognize $7,000 of ordinary income upon the assignment of receivables. b. The corporation's basis in the condominium is the carried over basis of $30,000 plus the gain recognized by Elmo on the mortgage relief. c. Elmo must recognize a gain of $4,000. d. The Corporation will recognize $7,000 of ordinary income upon collection of the receivables