Lenny transfers real estate with a basis of $140,000 and FMV of $190,000 to a controlled corporation in return for stock in the corporation. However, shortly before the transfer, Lenny mortgages the real estate and uses the $20,000 of proceeds to meet personal obligations. Determine the taxable income of Lenny on the transfer.

$50,000

$20,000

$140,000

$120,000