Jamie Transferred 100 Percent of Her Stock in Fox Company

Jamie transferred 100 percent of her stock in Fox Company to Otter Corporation in a Type A merger. In exchange, she received stock in Otter with a fair market value of $400,000 plus $600,000 in cash. Jamie's tax basis in the Fox stock was $600,000. What amount of gain does Jamie recognize in the exchange and what is her basis in the Otter stock she receives?

A) $400,000 gain recognized and a basis in Otter stock of $400,000
B) $600,000 gain recognized and a basis in Otter stock of $400,000
C) $400,000 gain recognized and a basis in Otter stock of $600,000
D) $600,000 gain recognized and a basis in Otter stock of $600,000