In this question, please clarify the difference between contribute and sell the shares on an exchange and contribute.

92. Jessica owns 60 percent of Hudson Company. The firm needs some assets and all of the shareholders are considering contributing assets in a prearranged plan that would qualify for Code Sec. 351 treatment. Jessica would contribute 100 shares of XYZ Company stock. Her basis in the shares is $200,000 and their fair market value is $150,000. Jessica is uncertain about the transaction. She is considering selling the shares and contributing cash. Which of the following statements is correct? a. If Jessica contributes the shares then she will be able to recognize a $50,000 loss b. If Jessica sells the shares to Hudson Company then she will be able to recognize a $50,000 loss c. If Jessica sells the shares on an exchange and contributes $150,000 to Hudson Company then she will be able to recognize a $50,000 loss d. If Jessica sells the shares on an exchange and contributes $150,000 to Hudson Company then she will not be able to recognize a $50,000 loss