Larry Moon incorporated his detective agency and transferred the following assets and liabilities to Moon Probes Inc, for 100 percent of its stock: Adj basis value Acc receivables 0 7000 acc payable 0 3000 office condo 30,000 62,000 Mortgage payable 34,000 34,000 The following statements about the above incorporation are all false except: A. Larry must recognize $ 7000 of his realized gain B. The corporation 's basis in the condominium is the carried over basis of $ 30,000 C. Larry must recognize a gain of $ 4000 and the corporation can deduct $ 3,000 when it pays the accounts payable. D. Larry must recognize $ 7,000 of ordinary income upon the assignment of receivables