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 Partnership in exchange for a partnership interest.Which of the following statements is true?

A) If Mr.Jamail owns a 14% partnership interest immediately after the exchange,he must recognize a $157,100 gain.
B) If Mr.Jamail owns 34% partnership interest immediately after the exchange,he recognizes no gain on the exchange.
C) If Mr.Jamail owns a 14% partnership interest immediately after the exchange,his tax basis in the interest is $187,000.
D) Statements A and C are true.