Cat Corporation is acquiring Bird Corporation by exchanging 100,000 shares of Cat stock and $80,000 cash for all of Bird's assets (valued at $500,000), liabilities ($200,000), and accumulated earnings and profits ($120,000). Betty purchased 40% of Bird five years ago for $60,000 and Keith purchased the remaining 60% for $90,000. What is the amount and character of the gain or loss Betty and Keith recognize, assuming that the reorganization qualifies as a "Type A" reorganization? What is the basis in their new Cat Corporation stock?