Ben Brown transferred property that had an adjusted basis to him of $40,000 and a fair market value of $50,000 to Cracker Corporation in exchange for 100 percent of Cracker's only class of stock and $15,000 cash. At the time of the transfer, the stock had a fair market value of $35,000. What is the amount of gain or loss to be recognized by Ben upon transferring the property to the newly formed corporation?

Select one:

a. $15,000

b. $0

c. $25,000

d. $10,000