Mr. Carroll transferred the title of a condo he owned in Mexico to his 100%-owned accounting corporation in exchange for stock worth $5,000. Carroll used the condo for personal purposes, and he had no bona fide business reason for the transfer. At the time of the transfer, the condo had a fair market value of $170,000, an adjusted basis of $160,000, and a mortgage of $165,000 (which was assumed by the corporation). What is the amount of Mr. Carroll's recognized gain?

• A.
• $165,000
• B.
• $10,000
• C.
• $5,000
• D.
• $0