When done under the terms of IRC Section $1035,$ the exchange of one life insurance or annuity contract $($with gain$)$ for another accomplishes which of the following? $($Assume neither contract is a modified endowment contract and that the original contract's value includes basis and gain.$)$

A$)$ The total contract value of the oniginal contract is not considered.

B$)$ The basis and gain of the original contract are transferred intact to the new contract

C$)$ The total contract value of the new contract is zero.

D$)$ The total contract value of the original contract becomes the starting basis of the new contract.