Dick, Bev and Mollie form Murphy Corporation. Dick transfers land worth $80,000 (adjusted basis is $25,000) for 80 shares, Mollie transfers $40,000 cash for 40 shares and Bev transfers equipment worth $40,000 (adjusted basis is $16,000) and $40,000 of services for 80 shares. Bev's tax consequences are:
A. $64,000 recognized gain; basis in 80 shares of $80,000
B. $40,000 recognized gain; basis in 80 shares of $56,000
C. $24,000 recognized gain; basis in 80 shares of $40,000
D. $0 recognized gain; basis in 80 shares of $16,000