please explain in details

Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type A merger. In exchange. she recelved stock in Plum with a fait market value of $517,500 plus $517,500 in cash. Simone's tax basis in the Purple stock was $278,000. What anount of gain does $im0ne recognize in the exchange and what is her basis in the Plum stock she recetves? Mulipie Choice $757,000 gain recognized and a bsis in Plum stock of $1,095,000 $757000 gain recognited and a basis in Pham stock of $517500 \$5t7 S00 gan recognired and a basis in Pum stock of 5517,400 \$593,90 gain recognited and a basis in frum stock of 327 th 000