Taylor transfers property with a basis of $400,000 and FMV of $1 million to Rodger, Inc. and receives 50% of its stock. Dana receives the other 50% of the stock for services rendered (worth $1 million). Determine Taylors gain or (loss) from the transfer and Danas basis in the stock received.

$0 and $1 million

$600,000 and $1 million

$1 million and $1 million

$1 million and $600,000