Sally transfers property worth $600,000, basis of $400,000, to Orange Corporation for 80% of the stock in Orange, worth $450,000, and a long-term note, executed by Orange Corporation and made payable to Sally, worth $150,000.As a result of these transactions, Sally recognizes:

a. No gain

b. A $50,000 gain

c. A $150,000 gain

d. A $200,000 gain

e. None of the above