Axle Corporation Acquires 100% of Drexel Corporation's Stock from Drexel's

Axle Corporation acquires 100% of Drexel Corporation's stock from Drexel's shareholders for $500,000 cash. Drexel Corporation has assets with a $600,000 adjusted basis and an $800,000 FMV. The assets are subject to $200,000 in liabilities. Drexel Corporation shareholders purchased their stock eight years ago for $300,000. Axle Corporation's basis in the Drexel Corporation stock is

A) $500,000.
B) $300,000.
C) $800,000.
D) $600,000.