Mario and Lupita Form a Corporation in a Transaction Coming

Multiple Choice

Mario and Lupita form a corporation in a transaction coming under Sec. 351. Lupita transfers property with an adjusted basis of $150,000 and an FMV of $200,000 in exchange for one-half of the stock. The property has an $80,000 mortgage, which the corporation assumes. Lupita has a recognized gain of

A) $0.
B) $50,000.
C) $100,000.
D) $80,000.