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 is this transaction treated for tax purposes?

A) Ula recognizes a $15,000 gain on the exchange.
B) Ula recognizes a $25,000 gain on the exchange.
C) Ula recognizes a $25,000 gain and Purple recognizes a $25,000 gain on the exchange.
D) Purple recognizes a $50,000 gain on the exchange.