Tom transfers a building that orignally cost 40000 to Paul Corp. in exchange for 100% of the corporations stock. The adjusted basis of the building is 20000. At the time of the transfer, the building is subject is subject to a liability of 30000 (which has no business purposeto it) and is worth 60000. How much gain must Tom recognize.

a. 0, b 1000, c.30000, d. 40000