Freddie, a Cash Basis taxpayer, incorporates her Sole Proprietorship in 2023. She transfers the following items to the newly created Helen Corporation: Cash - $80,000 (Adjusted Basis); $80,000 (Fair Market Value); Land - $420,000 (Adjusted Basis); $420,000 (Fair Market Value); Mortgage Payable - $550,000 (Adjusted Basis); $550,000 (Fair Market Value). Freddie received only stock for the transfer of the assets to the newly created corporation. Which of the following is correct regarding the transfer?

Freddie has no Recognized Gain or Recognized Loss.Freddie has Recognized Gain of $130,000.Helen Corporation's basis in the Land is $420,000.Freddie has Recognized Gain of $50,000