Need explanation please.

T Corporation was formed 10 years ago by J, K, and L. These three sharehold- ers currently own all of the corporation's stock as follows: J owns 500 shares, K owns 100 shares, and L owns 100 shares. This year J contributed property worth S90,000 (basis $20,000) to the corporation in exchange for an additional c 300 shares. J wil ' Recognize gain on the exchange because on the exchange he received only 30% of the stock outstanding after the exchange a. b Recognize gain because the transfer is not to a newly formed corporation Recognize no gain because transfers to a corporation by a shareholder in exchange for a stock interest are nontaxable regardless of the transferor's stock ownership d. Recognize no gain because he has sufficient stock ownership after the exchange