Ronald, a cash basis taxpayer, incorporates his sole proprietorship. He transfers the following items to newly created Yo-Yo Corporation, in return for stock in Yo-Yo. The corporation assumes the mortgage. With respect to this transaction: (A) Yo-Yo Corporation's basis in the building is $175,000 (B) Ronald has a recognized gain of $50,000 (C) Ronald has no recognized gain (D) Ronald has a recognized gain of $135,000