Lucia transferred equipment (adjusted basis of $100,000 and fair market value of $500,000) to Gamma Corporation. In return, Lucia received 80% of Gamma Corporation's stock (worth $320,000) and an automobile (fair market value of $60,000). In addition, there is an outstanding mortgage of $120,000, held for 5 years, on the building that Gamma Corporation assumed. With respect to this transaction:

		Lucia's recognized gain is $80,000.
		Gamma Corporation's basis in the building is $100,000.
		Lucia's recognized gain is $60,000.
		Lucia has no recognized gain.
		None of the above