1. Pursuant to a plan of reorganization adopted in the current year, Stockbridge Corporation exchanged property with an adjusted basis of $100,000 for 10,000 shares of the Lee Corporation. The shares of Lee had a fair market value of $120,000 on the date of the exchange. Stockbridge Corporation was liquidated shortly after the exchange, with its sole shareholder Yolanda receiving the Lee shares. Yolanda had a $110,000 basis in the Stockbridge shares surrendered. As a result of this exchange, what are Yolanda's recognized gain and her basis in the Lee stock? a. $0 recognized gain and $100,000 stock basis. b. $0 recognized gain and $110,000 stock basis. c. $0 recognized gain and $120,000 stock basis. d. $20,000 recognized gain and $120,000 stock basis