Ben formed Dane, Inc. in a transaction that qualifies for Section 351 by transferring land (worth $200,000 with a basis of $100,000) to the corporation in exchange for 100% of its stock. The land was subject to a mortgage of $127,000 which was incurred two years ago for valid business reasons. Dane, Inc. took the building subject to the mortgage. Both Ben and Dane properly use the cash method of accounting. As a result of these events, Ben: A. Must recognize a gain of $127,000 B. Must recognize a gain of $100,000 C. Must recognize a gain of $27,000 D. Has no recognized gain or loss