John and Ben from River Corporation. John transfers depreciated property (basis of $70,000 and fair market value of $60,000) while Ben transfers appreciated property (basis of $5,000 and fair market value of $50,000) and contributes $10,000 in cash. Each receives 50% of River Corporation's stock, which is worth $60,000 each. As a result of these transfers:

a. John has recognized (deductible) loss of $10,000 and Ben has a recognized (taxable) gain of $45,000

b. neither john nor ben has any recognized gain or loss

c. john has no recognized loss but ben has a recognized gain of $10,000