Ula Purchased Stock in Purple, Inc

Ula purchased stock in Purple, Inc., 6 years ago for $150,000. Purple has assets with a value of $180,000 (basis of $75,000) and liabilities of $25,000. Purple transfers most of its assets and all of its liabilities to White Corporation in exchange for $140,000 of White common stock. Purple distributes the White stock and its remaining $15,000 cash to Ula in exchange for all of her Purple stock. Purple then liquidates. How will this transaction be treated for tax purposes?

A) Ula recognizes a $5,000 gain on the reorganization.
B) Ula recognizes a $15,000 gain on the reorganization.
C) Ula recognizes a $15,000 gain and Purple recognizes a $25,000 gain on the reorganization.
D) Purple recognizes a $40,000 gain on the reorganization.
E) None of the above.