Individual A transfers property with an adjusted basis of $10,000 and a $13,000 FMV in exchange for 50 shares of stock of the newly formed corporation. The property transferred has a mortgage of $5,000, also assumed by the corporation. Individual B contributes $10,000 in cash in exchange for 50 shares of stock of the corporation. This transaction meets the requirements of Section 351. EJ Tee F What reflects how the transferred liability is handled by the transferee and the transferor?

Individual A's amount realized from the transfer is decreased due to the liability transfer, but her realized gain of $2,000 is recognized as it is considered to be boot.

Individual A's amount realized from the transfer is decreased due to the liability transfer, but her realized gain of $5,000 is not recognized as it is not considered to be boot.

Individual A's amount realized from the transfer is increased due to the liability transfer, but her realized gain of $5,000 is not recognized as it is not considered to be boot.

Individual A's amount realized from the transfer is increased due to the liability transfer, but her realized gain of $2,000 is recognized as it is considered to be boot.