Prob 1, #11 Lynn transfers land having a $50,000 adjusted basis , an $80,000 FMV, and $10,000 cash to Allied Corporation in exchange for 100% of allied stock. The corporation assumes the $70,000 mortgage on the land. Which of the following statements is correct? A) Lynn recognizes no gain and the stock basis is $60,000 B) Lynn recognizes a $10,000 gain and the stock basis is $60,000 C) Lynn recognizes no gain and the stock basis is $50,000. D) Lynn recognizes a $10,000 gain and the stock basis is zero