Celeste transferred 100 percent of her stock in Supply Chain Company to Marketing Corporation in a Type A merger. In exchange, she received stock in Marketing with a fair market value of $715,000 plus $715,000 in cash. Celeste's tax basis in the Supply Chain stock was $1,580,000. What amount of loss does Celeste recognize in the exchange and what is her basis in the Marketing stock she receives?

Multiple Choice

a. $150,000 loss recognized and a basis in Marketing stock of $865,000

b. No loss recognized and a basis in Marketing stock of $1,580,000

c. No loss recognized and a basis in Marketing stock of $865,000

d. $150,000 loss recognized and a basis in Marketing stock of $1,580,000