Julian Transferred 100 Percent of His Stock in Lemon Company

Julian transferred 100 percent of his stock in Lemon Company to Apricot Corporation in a Type B stock-for stock exchange. In exchange, he received stock in Apricot with a fair market value of $200,000. Julian's tax basis in the Lemon stock was $400,000. Whatamount of loss does Julian recognize in the exchange and what is his basis in the Apricot stock he receives?

A) $200,000 loss recognized and a basis in Apricot stock of $200,000.
B) $200,000 loss recognized and a basis in Apricot stock of $400,000.
C) No loss recognized and a basis in Apricot stock of $400,000.
D) No loss recognized and a basis in Apricot stock of $200,000.