Paladin Corporation transferred its 90 percent interest to Furman Company as part of a complete liquidation of the company. In the exchange, Paladin received land with a fair market value of $1,000,000. The corporation's basis in the Furman Company stock was $400,000. The land had a basis to Furman Company of $200,000. What amount of gain does Paladin recognize in the exchange and what is its basis in the land it receives? $600,000 gain recognized and a basis in the land of $1,000,000 $600,000 gain recognized and a basis in the land of $400,000 No gain recognized and a basis in the land of $400,000 No gain recognized and a basis in the land of $200,000