Theta Corporation purchased all the assets of Alpha Corporation for $2,100,000. Alpha Corporation then liquidated. The basis of the assets sold was $1,465,000 and the FMV $2,000,000. Which of the following is true?

		Alpha recognizes $535,000 gain.
		Alpha recognizes $635,000 gain.
		Alpha recognizes $0 gain.
		Theta has $2,000,000 basis in the assets it purchased.