Don, a cash basis taxpayer, incorporates his sole proprietorship. He transfers the following items to newly created Orange Corporation. Cash Building Mortgage payable (secured by the building and held for 15 years) Adiusted Basis $10,000 120,000 135,000 Fair Market Value $ 10,000 175,000 135,000 With respect to this transaction: a. Orange Corporation's basis in the building is $120,000. b. Don has a recognized gain of $5,000. e. Don has a recognized gain of $10,000. d. Don has no recognized gain