Silver Corporation transfers assets with a fair market value of $3,000,000 (basis of $750,000) to Gold Corporation. Silver receives Gold voting stock worth $2,600,000 and cash of $400,000. Gold assumes none of Silver's $600,000 liabilities. Silver distributes the Gold stock and its liabilities to its shareholders. Silver recognizes gain on the transfer of

$0. $400,000. $600,000. $1,000,000. None of the above