Parent Corporation owns all of the Subsidiary Corporation's stock. Subsidiary's assets have a $1,000,000 FMV and $400,000 adjusted basis. Parents basis for Subsidiary stock is $250,000. Subsidiary liquidates into Parent. Which of the statements is true. Parent must recognize $750,000 gain. The liquidation of Subsidiary results in a $600,000 realized gain for Subsidiary but none of it is recognized. Parents basis in Subsidiary's assets is $1,000,000 Parent must recognize $400,000 gain