Prep Boys, a general partnership, has two general partners, Monny and Mobe with both owning a 50% partnership interest. The partnership agreement allows for the additional of additional properties as long as the current partners agree with a majority vote. Both Monny and Mobe agree to admit Jock as the third partner as long as Jock contributes a process patent that Monny and Mobe desire. Mobe agrees to contribute the patent with a fair value of $15 million and an adjusted tax basis of $1.2 million. After the transfer, Jock only has a 1/3 (one-third) interest in Prep Boys which has a fair value of $12 million. In other words, Jock is NOT in control after the transfer. What is Jock’s realized at recognized gain after the transfer. Multiple Choice $0 realized gain; $0 recognized gain $10.8 million realized gain; $0 recognized gain $10.8 million realized gain; $10.8 million recognized gain None of the above