Abe forms Bigfoot Corporation by transferring land $($basis of $$125,000,$ fair market value of $$775,000),$ which is subject to a mortgage of $$175,000.$ One month prior to incorporating Bigfoot, Abe borrows $$100,000$ for personal reasons and gives the lender a second mortgage on the land. Bigfoot Corporation issues stock worth $$300,000$ to Abe and assumes the mortgages on the land. What are the tax consequences to Abe?

a$.$ Abe recognizes $0$ gain or loss.

b$.$ Abe recognizes a $$275,000$ taxable gain.

c$.$ Abe recognizes a $$475,000$ taxable gain.

d$.$ Abe recognizes a $$650,000$ taxable gain.