Ferdinand and Isabella transferred money and a business sailing ship for stock in Columbus Corporation.

Immediately after the exchange, Ferdinand owned 30% of the voting power and 49% of the total shares of each of the other classes of stock and Isabella owned 55% of the voting power and 36% of the total shares of each of the other classes of stock. Ferdinand and Isabella are not otherwise related. What is the gain on the transaction

a. Neither Ferdinand nor Isabella will recognize gain on the exchange

b. Both Ferdinand and Isbella will recognize gains on the exchange

c. Only Ferdinand will recognize gain on the exchange

d. Only Isabella will recognize gain on the exchange