Ben and Jerry decide to incorporate their ice cream business. Allie would also like to be a shareholder in the business. As such, Ben and Allie agree that immediately after the incorporation of the company and the issuance of stock, Ben will sell Allie half of his shares in the company. Ben contributes inventory (FMV $60,000, Basis $30,000), and accounts receivable (FMV $40,000, Basis $40,000) to the corporation for 50% of the stock, and Jerry contributes equipment (FMV $60,000, Basis $80,000) for the other 50% of the stock. What gain or loss does Ben and Jerry recognize in the transfer.

A. Ben: $30,000 loss; Jerry: $20,000 gain

B. No Gain or Loss is Recognized since the transaction qualifies under 351

C. Ben recognizes a $30,000 gain but Jerry receives non-recognition treatment on the transfer

D. Ben: $30,000 gain; Jerry: $20,000 gain

E. None of these.