This Year P and Q Formed ABC Corporation

This year P and Q formed ABC Corporation.P transferred a building worth $90,000 (basis $25,000) to the corporation in an exchange generally qualifying under § 351.The building was subject to a mortgage of $10,000, and P received stock worth $80,000 on the exchange.P will recognize

A) No gain or loss and have a basis in his stock of $25,000
B) No gain or loss and have a basis in his stock of $15,000
C) A gain of $10,000 and have a basis in his stock of $25,000
D) A gain of $15,000
E) A gain of $65,000