### Problem related to mortgage on the land

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Albert transfers land (basis of \$140,000 and fair market value of \$320,000) to Gold Corporation for 80% of its stock and a note payable in the amount of \$80,000. Gold assumes Albert's mortgage on the land of \$200,000.

a. Albert has a recognized gain on the transfer of \$140,000.

b. Albert has a recognized gain on the transfer of \$80,000.

c. Albert has a recognized gain on the transfer of \$60,000.

d. Gold Corporation has a basis in the land of \$220,000.

e. None of the above.

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