Joan Owns All the Stock in Turquoise Corporation

Joan owns all the stock in Turquoise Corporation.Joan has a basis of $200,000 in the Turquoise stock, which currently has a fair market value of $500,000.Turquoise is merged into Lima Corporation.Joan receives Lima preferred stock worth $200,000 and common stock worth $300,000.Joan recognizes a gain of:

A) $500,000.
B) $300,000.
C) $200,000.
D) $0.
E) None of the above.