Dick, a cash basis taxpayer incorporates his sole proprietorship he transfers the following items to newly acquired i Orange Corp

Adjusted basis fair market value

cash 10,000 10,000

building 120,000 175,000

mortgage payable 135,000 135,000

with respect to this transaction select one

a) oranfge corp basis in the building is $ 120,000

b dick has no recognized gain

c) dick has recognized gain of $5000

d) recognized gain of 10,000

e) none of the above