Robert transferred property to XYZ Corporation in exchange for stock. Immediately after the exchange, Robert controlled the corporation. Robert received $40,000 in cash in the transaction. The FMV of the stock Robert received was $70,000. His basis in the property transferred to XYZ was $140,000. The corporation assumed Robert's $80,000 mortgage on the property. Robert was personally liable for the mortgage. Select the amount of gain Robert realized from this transfer:

a) $70,000 b) $50,000 c) $40,000 d) $90,000