Brody owns all the stock in Mongoose Corporation. Brody has a basis of $200,000 in the Mongoose stock, which currently has a fair market value of $500,000. Mongoose is merged into Chestnut Corporation. Brody receives Chestnut preferred stock worth $200,000 and common stock worth $300,000. Brody recognizes a gain of

A. $0

B. $300,000

C. $100,000

D. $200,000

E. None of the above