An equal partnership is formed by Charles and Camila. Charles contributes cash of $10,000 and a building with a fair market value of $150,000, adjusted basis of $55,000, and subject to a liability of $140,000. Camila contributes cash of $20,000. What is Charless recognized gain or loss in this transaction?

Select one:

a.

Gain of $85,000

b.

Gain of $15,000

c.

Gain of $10,000

d.

Loss of ($15,000)

e.

$0