Question - Victoria and Matthew organize Tax Corp, which issues common stock with a fair market value of $120,000. Victoria contributes a building with a basis of $40,000 and a fair market value of $80,000 in exchange for 60 percent of the stock. The building was subject to a $10,000 mortgage assumed by Tax Corp. What amount of gain does Victoria recognize on the exchange?
A. $0
B. $10,000
C. $40,000
D. $30,000
E. None of the above