Susan contributes property with an adjusted basis of $30,000 and a fair market value of $60,000 as part of a group contributing property to a corporation in a qualified Sec. 351 exchange. She had held the property in her sole proprietorship prior to the incorporation. The property is encumbered by $20,000 in liabilities assumed by the corporation. The liability on the asset occurred because Susan partially financed the purchase of the business property a number of years ago with debt but had paid-off part of the liability prior to contributing it to the corporation. As a result of these events _______

Question options:

	Susan has no recognized gain on the transfer and $10,000 basis in her stock; the corp. has a $30,000 basis in the property
	Susan has no recognized gain on the transfer and $10,000 basis in her stock; the corp. has a $10,000 basis in the property
	Susan has a recognized $20,000 gain on the transfer and $30,000 basis in her stock; the corp. has a $50,000 basis in the property