Al transfers a building (adjusted basis of $15,000 and fair market value of $90,000) to ABC Corporation. In return, Al receives 80% of ABC Corporation's stock (worth $65,000) and an automobile (fair market value of $5,000). In addition, there is an outstanding mortgage of $20,000 (taken out 15 years ago) on the building, which ABC Corporation assumes. With respect to this transaction (show calculations):

Al has no recognized gain. Al's recognized gain is $5,000. Al's recognized gain is $10,000

ABC Corporation's basis in the building is $15,000

None of the above.