Gavin contributes $$500,000$ of services to a C corporation in exchange for $75\%$ of the shares outstanding. Which of the following statements best describes the tax treatment of this exchange?

Group of answer choices

Gavin must recognize $$500,000$ of ordinary income because Sec. $351$ does not apply.

Gavin must recognize $$500,000$ of income because he does not control the corporation immediately after the exchange.

Gavin need not recognize any income as long as another party transfers property in exchange for at least $5\%$ of the shares outstanding.

Gavin need not recognize any income because the $80\%$ threshold for control does not apply to services.