Celeste Transferred 100 Percent of Her Stock in Supply Chain

Celeste transferred 100 percent of her stock in Supply Chain Company to Marketing Corporation in a Type A merger. In exchange, she received stock in Marketing with a fair market value of $500,000 plus $500,000 in cash. Celeste's tax basis in the Supply Chain stock was $1,200,000. What amount of loss does Celeste recognize in theexchange and what is her basis in the Marketing stock she receives?

A) No loss recognized and a basis in Marketing stock of $700,000.
B) No loss recognized and a basis in Marketing stock of $1,200,000.
C) $200,000 loss recognized and a basis in Marketing stock of $700,000.
D) $200,000 loss recognized and a basis in Marketing stock of $1,200,000.