Victoria, a shareholder bought 10,000 shares of Jones Corporation for $50,000 several years ago. When the stock is valued at $90,000, Jones Corporation redeems the shares in exchange for 5,000 shares of Smith Corporation stock and a $10,000 Smiths bond. Assume the transaction meets the requirements of 368. Which of the following statements is false regarding this transaction? Please explain your reasoning. (Hint: Refer Ch:7)

a. Victoria has a realized gain of $40,000.

b. Victoria has a postponed gain of $30,000.

c. Victoria has a basis in the Smith Corp. stock of $70,000.

d. Victoria has a recognized gain of $10,000.