Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type A merger. In exchange, she received stock in Plumn with a fair market value of $732,500 plus $732,500 in cash. Simone's tax basis in the Purple stock was $251,000. What amount of gain does Simone recognize in the exchange and what is her basis in the Plum stock she receives? Multiple Choice O $1.214,000 gain recognized and a basis in Plum stock of $1,465,000. $1.214,000 gain recognized and a basis in Plum stock of $732,500. O $732.500 gain recognized and a basis in Plum stock of $732,500 $732,500 gain recognized and a basis in Plum stock of $251,000