Mr Jamail Transferred Business Personalty (FMV $187,000; Adjusted Tax Basis

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.