Apricot, a cash basis taxpayer, incorporates her sole proprietorship. She transfers the following it

/in /by

Apricot, a cash basis taxpayer, incorporates her sole proprietorship. She transfers the following items to newly created Strawberry Corporation. Adjusted Basis Fair Market Value Cash

$10,000

$10,000 Building

120,000

175,000 Mortgage payable (secured by the building and held for 15 years)

135,000

135,000 How much gain must Apricot recognize? What is Apricot's basis in the stock she receives? What is Strawberry Corporation's basis in the building?