Cameron transferred the title of a condo he owned in Mexico to his 100% corporation in exchange for stock worth $5.000. Cameron used the condo for personal reasons and there was no bona fide business reason for the transfer. At the time of the transfer, the condo had a FMV of $170,000, adjusted basis of $160,000 and a mortgage of $165,000 (assumed by the corporation). What is Cameron's recognized gain and the corporation's

basis?

a. 16,500 gain and 165,000 basis

b. O gain and 160,000 basis

c. 5,000 gain and 165,000 basis

d. 10,000 gain and 170,000 basis