Kinga exchanges 4,000 shares of COBM Corporation stock that she had purchased for $750,000 for 5,000 shares of AFBL Corporation common stock with a fair market value of $1,000,000. What is Kinga's recognized gain on the exchange and her basis in the AFBL stock? Explain.

A)

Recognized Gain	Basis
$0	$750,000

B)

Recognized Gain	Basis
$0	$1,000,000

C)

Recognized Gain	Basis
$250,000	$750,000

D)

Recognized Gain	Basis
$250,000	$1,000,000