Jacob, Kaitlin and Martha form Online Corp with authorized voting common stock of $240,000. Martha receives 1/3 of the stock in payment for...

Jacob, Kaitlin and Martha form Online Corp with authorized voting common stock of

$240,000. Martha receives 1/3 of the stock in payment for organizational services she renders.

Martha contributed no property. Jacob contributed property with an adjusted basis of $5,000 and

a fair market value of $20,000. What amount of gain does Jacob recognize from this transaction?

A. $0

B. $75,000

C. $15,000

D. $235,000

E. None of the above