Ula Purchased Stock in Purple,Inc

Ula purchased stock in Purple,Inc. ,6 years ago for $150,000.Purple has assets with a value of $225,000 ($175,000 basis) and liabilities of $60,000.Purple transfers $200,000 of assets and all of its liabilities to White Corporation in exchange for White common stock.Purple distributes the White stock and its $25,000 remaining asset (cash) to Ula in exchange for all of her Purple stock.Purple then liquidates.How will this transaction be treated for tax purposes?

A) Ula recognizes a $25,000 gain on the reorganization.
B) Ula recognizes a $15,000 gain on the reorganization.
C) Ula recognizes a $25,000 gain and Purple recognizes a $25,000 gain on the reorganization.
D) Purple recognizes a $50,000 gain on the reorganization.
E) None of the above.