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 $532,500 plus $532,500 in cash. Celeste's tax basis in the Supply Chain stock was $1,455,000. What amount of loss does Celeste recognize in the exchange and what is her basis in the Marketing stock she receives?

A) $390,000 loss recognized and a basis in Marketing stock of $1,455,000
B) No loss recognized and a basis in Marketing stock of $1,455,000
C) $390,000 loss recognized and a basis in Marketing stock of $922,500
D) No loss recognized and a basis in Marketing stock of $922,500