92. David Shea transfers real estate with a basis of $ 40,000 and a PM of $90,000 to a controlled corporation in return for stock in the corporation. Just before the transfer, David obtains a loan secured by the real estate and uses the $ 10,000 loan proceeds to buy a new motorcycle. Along with the real estate, the mortgage is transferred to the corporation. Which of the following are true with regard to the tax consequences to David? A. The mortgage assumed by the corporation does not exceed his basis in this particular property transferred but because the liability is considered boot, David has to report a gain. B. No bona fide business purpose exits for the corporation to assume David's loan. C. Using the proceeds for personal purposes is like the corporation distributing cash, which would be taxed as boot under normal circumstances. D. All of the above