J, L, and R Formed a New Corporation

J, L, and R formed a new corporation.J exchanged equipment worth $35,000 (basis $8,000) for 35 percent of the stock, and services worth $25,000 for 25 percent of the stock; L exchanged land worth $25,000 (basis $5,000) for 25 percent of the stock; and R received 15 percent of the stock in exchange for securities worth $15,000 (basis $10,000) .Which of the following statements is true?

A) The transaction would not be eligible for nonrecognition because more than 20 percent of the stock received was in exchange for services.
B) The transaction will be eligible for nonrecognition, but J will have to recognize gain on the compensation for services.
C) Only the basis of the property transferred is considered in determining whether nonrecognition is granted; the three shareholders owned 80 percent of the property transferred.
D) None of the above