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 $593,000 plus $593,000 in cash. Celeste's tax basis in the Supply Chain stock was $1,480,000. What amount of loss does Celeste recognize in the exchange and what is her basis in the Marketing stock she receives?

Group of answer choices

$294,000 loss recognized and a basis in Marketing stock of $1,480,000

No loss recognized and a basis in Marketing stock of $1,480,000

$294,000 loss recognized and a basis in Marketing stock of $887,000

No loss recognized and a basis in Marketing stock of $887,000