Mars Corporation merges into Jupiter Corporation by exchanging all of its assets for 300,000 shares of Jupiter stock valued at $2 per share and $100,000 cash. Wanda, the sole shareholder of Mars, surrenders her Mars stock (basis $900,000) and receives all of the Jupiter stock transferred to Mars plus the $100,000. How does Wanda treat this transaction on her tax return?

a. Wanda recognizes a $100,000 gain. Her Jupiter stock basis is $900,000.

b. Wanda has a realized loss of $200,000. Her Jupiter stock basis is $800,000.

c. Wanda recognizes a $100,000 gain. Her Jupiter stock basis is $700,000.

d. Wanda realizes a $200,000 loss of which $100,000 is recognized. Her Jupiter stock basis is $1 million.