Paper Corporation Adopts a Plan of Reorganization and Exchanges 1,000

Paper Corporation adopts a plan of reorganization and exchanges 1,000 shares of its voting stock and $50,000 in cash for Chase Corporation's assets having a $200,000 adjusted basis and a $275,000 FMV. Chase Corporation is subsequently liquidated. What is Paper Corporation's basis in the assets acquired in the exchange?

A) $200,000
B) $250,000
C) $275,000
D) $50,000