A shareholder bought 10,000 shares of Clorox Corporation for $50,000 several years ago. When the stock is valued at $90,000, Clorox redeems the shares in exchange for 5,000 shares of Blue Corporation stock and a $10,000 Blue bond. This transaction meets the requirements of 368. Which of the following statements is false with regard to this transaction?

	a.	The shareholder has a realized gain of $40,000.
	b.	The shareholder has a postponed gain of $30,000.
	c.	The shareholder has a basis in the Blue stock of $60,000.
	d.	The shareholder has a recognized gain of $10,000.