Problem: In a transaction that qualifies under Section 351, Buster transfers an asset with a basis of $50,000 and a fair market value of $80,000 to Bronco, Inc. in exchange for Bronco common stock. The asset is encumbered by a $75,000 liability, which Bronco assumes. The liability was incurred many years ago to acquire the asset being transferred. Buster owns 100% of Bronco, Inc. In addition, Buster contributes his own promissory note to Bronco in the amount of $30,000. Buster's recognized gain on the Section 351 transfer is:
A. $0, but only if there is no risk of Bronco going into bankruptcy
B. $0, but only if there is a non-trivial risk of Bronco going into bankruptcy
C. $30,000, because the note is a meaningless gesture