Jack and Jill form a new corporation. Jack contributes inventory for 81% of the stock and Jill contributes legal services for 19% of the stock. What tax consequences ensue from the above described transaction? Group of answer choices A. Under IRC 351, Jack and Jill do not recognize any gain or loss under the above-described transaction. B. Jill must recognize the fair market value of the stock as ordinary income. C. Jack and Jill must recognize any realized gains because the transaction does not qualify under IRC 351. D. Jill must report the fair market value of the stock as a capital gain because the stock is a capital asset.