Joy and Joe are setting up a partnership to sell widgets. Joe has no property to contribute to partnership. He receives a 20% partnership interest in exchange for services rendered. On the day he was admitted to the partnership, the partnership's assets have a basis of $20,000 and a FMV of $80,000. What amount will Joe have to recognize?

Group of answer choices

He will have to recognize income of $80,000

He will have to recognize income of $0

He will have to recognize income of $20,000

He will have to recognize income of $16,000