Pursuant to a plan of corporate reorganization adopted in July Year 1, Gow exchanged 500 shares of Lad Corp. common stock that he had bought in January Year 1 at a cost of $5,000 for 100 shares of Rook Corp. common stock having a FMV of $6,000. Gows recognized gain on this exchange was Select one: a. $0 b. $1,000 long-term capital gain. c. $1,000 short-term capital gain. d. $1,000 ordinary income.