Rick transferred the following assets and liabilities to Warbler Corporation.

	Adjusted Basis	Fair Market Value
Building	$210,000	$225,000
Equipment	45,000	75,000
Trucks	15,000	30,000
Mortgage (held for four years) on building	30,000	30,000

In return, Rick received $75,000 in cash plus 90% of Warbler Corporation's only class of stock outstanding (fair market value of $225,000).

a.Rick's basis in the stock of Warbler Corporation is $270,000.

b.Rick has a recognized gain of $75,000.

c.Rick has a recognized gain of $60,000.

d.Warbler Corporation has the same basis in the assets received as Rick does in the stock.