In a Valid "C" Reorganization, Target Transfers Assets with a Basis

In a valid "C" reorganization, Target transfers assets with a basis of $1 million and a fair market value of $1.5 million and receives stock with a fair market value of $1.3 million and $200,000 boot.Target has no remaining assets.Target liquidates by transferring the stock and boot to its shareholders.The amount of gain Target must recognize is

A) $0
B) $200,000
C) $500,000
D) None of the above