Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In the exchange, Red Blossom received land with a fair market value of $637,500. The corporation's basis in the Tea Company stock was $302,500. The land had a basis to Tea Company of $672,500. What amount of gain does Red Blossom recognize in the exchange and what is its basis in the land it receives? Multiple Choice $335,000 gain recognized and a basis in the land of $672,500. $335,000 gain recognized and a basis in the land of $637,500. No gain recognized and a basis in the land of $672,500. No gain recognized and a basis in the land of $370,000