Please Show workings.

1. Jamie owned a rental apartment building in her sole name for four years. After her business advisors suggested that she conduct her rental activity in corporate form, she promptly transferred the apartment building to ABC Rental Corporation, a newly formed corporation. Jamie received all of the stock of ABC Rental Corporation in exchange for the apartment building. At the time of the transfer of the apartment building to ABC Rental Corporation, Jamie adjusted basis in the building was $50,000, the fair market value of the building was $150,000, the building was subject to a mortgage of $70,000 which ABC Rental Corporation assumed, and there was depreciation recapture potential of $12,000. Jamie received stock of ABC Rental Corporation worth $80,000. As a result of the transaction, how much gain was recognized by Jamie and what was the character of the gain?

A. 0 gain.

B. $12,000 gain, all of which was ordinary income.

C. $20,000 gain, at least $12,000 of which was ordinary income.

D. $30,000 gain, at least $12,000 of which was ordinary income.

Please Show workings.

2. Jamie owned a rental apartment building in her sole name for four years. After her business advisors suggested that she conduct her rental activity in corporate form, she promptly transferred the apartment building to ABC Rental Corporation, a newly formed corporation. Jamie received all of the stock of ABC Rental Corporation in exchange for the apartment building. At the time of the transfer of the apartment building to ABC Rental Corporation, Jamie's adjusted basis in the building was $50,000, the fair market value of the building was $150,000, the building was subject to a mortgage of $70,000 which ABC Rental Corporation assumed, and there was depreciation recapture potential of $12,000. Jamie received stock of ABC Rental Corporation worth $80,000. As a result of the transaction, what is the corporation's basis in the building?

A. $50,000.

B. $70,000.

C. $150,000.

D. $170,000.