Robert transferred an office building that has an adjusted basis of $60,000 and a fair market value of $105,000 to the Wargo Corporation in exchange for 100% of Wargo Corporation stock and $10,000 cash. The building was subject to a mortgage of $25,000, which Wargo Corporation assumed. The fair market value of the stock was $75,000. Which of the following are the amounts of Robert's realized gain and recognized gain?

• Realized
• Recognized
• A.
• $35,000
• $10,000
• B.
• $50,000
• $10,000
• C.
• $55,000
• $30,000
• D.
• $50,000
• $30,000