Qiang Corporation acquires the assets of Kween Corporation in a cash transaction. Which of the following BEST represents the likely tax treatment for Qiang and Kween?

Multiple choice question.

Kween will defer the recognition of any gains and losses and Qiang will take the carryover basis in the assets acquired.

Kween will recognize a gain or loss on the sale of its assets. Qiang will take the carryover basis in the assets from Kween.

Kween will recognize a gain or loss on the sale of its assets. Qiang will take a new tax basis in the assets.

Kween will defer the recognition of any gains and losses until the shareholders sell their stock and Qiang will receive a step$-$up in basis.