Elizabeth transferred a building (adjusted basis of $200,000 and fair market value of $310,000) to Pear Corporation. In return, Elizabeth received 80% of Pear Corporation's stock (worth $180,000) and an automobile (fair market value of $50,000). In addition, there is an outstanding mortgage of $210,000, held for 5 years, on the building that Pear Corporation assumed. With respect to this transaction:

(Give an explanation for your answer)

a. Elizabeth has no recognized gain.

b. Elizabeth's recognized gain is $50,000.

c. Elizabeth’s recognized gain is $60,000.

d. Pear Corporation's basis in the building is $200,000.

e. None of the above.