Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type A merger. In exchange, she received stock in Plum with a fair market value of $532,500 plus $532,500 in cash. Simone's tax basis in the Purple stock was $287.000. What amount of gain does Simone recogn in the exchange and what is her basis in the Plum stock she receives? Multiple Choice $778,000 gain recognized and a basis In Plum stock of $1.065,000. O $778.000 gain recognized and a basis In Plum stock of $532,500. $532,500 gain recognized and a basis in Plum stock of $532.500. O O $532,500 galn recognized and a basis in Plum stock of $287.000