Bob Exchanges 4000 Shares of Beetle Corporation Stock That He $$\begin{array} { | l | l | } \hline \text { Recognized Gain } & \text { Basis } \\\hline \$ 0 & \$ 1,000,000 \\\hline\end{array}$$

Bob exchanges 4000 shares of Beetle Corporation stock that he had purchased for $800,000 for 6000 shares of Butterfly Corporation common stock with a fair market value of $1,000,000. What is Bob's recognized gain on the exchange and his basis in the Butterfly stock?

A) $$\begin{array} { | l | l | } \hline \text { Recognized Gain } & \text { Basis } \\\hline \$ 0 & \$ 1,000,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | l | } \hline \text { Recognized Gain } & \text { Basis } \\\hline \$ 0 & \$ 800,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | l | } \hline \text { Recognized Gain } & \text { Basis } \\\hline \$ 200,000 & \$ 1,000,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | } \hline \text { Recognized Gain } & \text { Basis } \\\hline \$ 100,000 & \$ 800,000 \\\hline\end{array}$$