Broom Corporation Transfers Assets with an Adjusted Basis of $300,000 $$\begin{array} {| l | l | } \hline \text { Broom } & \text { Docker } \\\hline \$ 0 & \$ 0\\\hline \end{array}$$

Broom Corporation transfers assets with an adjusted basis of $300,000 and an FMV of $400,000 to Docker Corporation in exchange for $400,000 of Docker Corporation stock as part of a tax-free reorganization.The Docker stock had been purchased from its shareholders one year earlier for $350,000.How much gain do Broom and Docker Corporations recognize on the asset transfer?

A) $$\begin{array} {| l | l | } \hline \text { Broom } & \text { Docker } \\\hline \$ 0 & \$ 0\\\hline \end{array}$$
B) $$\begin{array} { |l | l | } \hline \text { Broom } & \text { Docker } \\\hline \$ 0 & \$ 50,000 \\\hline\end{array}$$
C) $$\begin{array} {| l |l | } \hline\text { Broom } & \text { Docker } \\\hline \$ 100,000 & \$ 0\\\hline\end{array}$$
D) $$\begin{array} {| l | l | } \hline \text { Broom } & \text { Docker } \\\hline \$ 100,000 & \$ 50,000 \\\hline\end{array}$$