Pursuant to a plan of corporate reorganization adopted in the current year, Cooper exchanged 1,500 shares of Hazelnut Corporation common stock which he had purchased for $200,000 for 2,200 shares of Macadamia Corporation common stock that have a fair market value of $475,000. As a result of the exchange, Cooper's recognized gain and his basis in the Macadamia stock are: Recognized gain of $275,000 and basis of $475,000. No recognized gain and basis of $200,000. No recognized gain and basis of $475,000. Recognized gain of $275,000 and basis of $200,000. None of the above.