Jack and Ji form a general partnership. Jack contributes a building with a fair market value of $ 600,000 and a tax basis of $700,000 for a 60 % capital and profits interest in the partnership Jill perfom services with a value of $400,000 and receives a 40 % capital and profits interest in the partnership. What amount of gain, loss of income must each partner recognize on the transaction? OA Jack recognizes $100,000 loss, recognizes no incomer loss OB. Jack recognizes no gain or los recognize 400.000 of ordinary income OC. Neither Jack nor al recognize any income or loss OD. Jack recognizes a $100.000 loss. Je recognizes $400,000 of ordinary income