Chase, Marty and Barry Form a Partnership

Chase, Marty and Barry form a partnership. Barry will contribute a building worth $240,000 (adjusted basis of $110,000) , inventory worth $55,000 (adjusted basis of $30,000) and $15,000 in cash for a 25% interest in the partnership. How much gain will Barry have to recognize from the exchange of his property for the partnership interest?

A) $-0-
B) $125,000 ordinary gain.
C) $130,000 long-term capital gain.
D) $5,000 ordinary gain.
E) $130,000 long-term capital gain and $5,000 ordinary loss.