Orange Corporation is liquidating. It issued a liquidating distribution to its 40% shareholder, Blue Corporation, of land with a fair market value of $500,000. Blues basis in its Orange stock was $300,000. The land had a basis to Orange of $600,000. What amount of gain does Blue recognize in the exchange and what is its basis in the land it receives?

A. $200,000 gain recognized and a basis in the land of $600,000

B. $200,000 gain recognized and a basis in the land of $500,000

C. No gain recognized and a basis in the land of $600,000

D. No gain recognized and a basis in the land of $300,000