1. Jack, Jill, and Jim form Newco, Inc. (a C corp.). Each are to be equal shareholders. Jack and Jill each contribute property with a 0 basis and a FMV of $50,000. Jim contributes his efforts in organizing the entity. After the organization, the corporation is valued at $150,000. The taxable gain to Jack, Jill and Jim on the transfer to the corporation is closest to:

a. 0/0/0

b. $50,000/$50,000/$50,000

c. 0/0/$50,000

d. $50,000/$50,000/0

e. $16,666/$16,666/$66.667