Don, a cash basis taxpayer, incorporates his sole proprietorship. He transfers the following items to newly created Orange Corporation. Fair Market Value $ 10,000 175,000 135,000 Adiusted Basis $10,000 120,000 135,000 Cash Building Mortgage payable (secured by the building and held for 15 years) 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