Yuri transfers business equipment with an adjusted basis of $30,000 and a fair market value of $41,000 in exchange for 100% of the stock of Beachco Corp. Yuri received stock with a fair market value of $16,000 plus $20,000 in cash. Beachco also assumes a $5,000 mortgage (liability) on the property. What result?

Select one:

a.$15,000 realized gain, $11,000 recognized gain

b.$10,000 realized gain, $5,000 recognized gain

c.$11,000 realized gain, $10,000 recognized gain

d.$11,000 realized gain, $0 recognized gain