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Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type A merger. In exchange, she received stock in Plum with a fair market value of $607,500 plus $607,500 in cash. Simone's tax basis in the Purple stock ws $238,000. What amount of gain does Simone recognize in the exchange and what is her basis in the Plum stock she receives? Multiple Choice $607,500 gain recognized and a basis in Plum stock of $238,000 $607,500 gain recognized and a basis in Plum stock of $607,500 $977,000 gain recognized and a basis in Plum stock of $607,500 $977,000 gain recognized and a basis in Plum stock of $1,215,000 Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In the exchange, Red Blossom received land with a fair market value of $520,000. The corporation's basis in the Tea Company stock was $417,500. The land had a basis to Tea Company of $622,500. What amount of gain does Red Blossom recognize in the exchange and what is its basis in the land it receives? Multiple Choice $102,500 gain recognized and a basis in the land of $520,000 No gain recognized and a basis in the land of $622,500 $102,500 gain recognized and a basis in the land of $622,500 No gain recognized and a basis in the land of $205,000