MrJamail Transferred Business Personalty (FMV $187,000; Adjusted Tax Basis $29,900)to

Multiple Choice

Mr.Jamail transferred business personalty (FMV $187,000; adjusted tax basis $29,900) to J&K Inc.in exchange for J&K common stock.Which of the following statements is true?

A) If Mr.Jamail owns 14% of J&K's outstanding stock immediately after the exchange,he must recognize a $157,100 gain.
B) If Mr.Jamail owns 74% of J&K's outstanding stock immediately after the exchange,he must recognize a $157,100 gain.
C) If Mr.Jamail owns 81% of J&K's outstanding stock immediately after the exchange,he must recognize a $157,100 gain.
D) Statements A and B are true.