Question - Pursuant to a plan of corporate reorganization, Pat exchanged 1,000 shares of Stream Corporation stock that she had purchased for $60,000, for 1,200 shares of Creek Corporation voting stock having a fair market value of $70,000, and $10,000 in cash. What is Pat's recognized gain on the exchange, and what is her basis in the Creek Corporation's stock?
A. $10,000 gain; $60,000 basis.
B. $10,000 gain; $70,000 basis.
C. $20,000 gain; $60,000 basis.
D. $20,000 gain; $70,000 basis.