A Shareholder Bought 2,000 Shares of Zee Corporation for $90,000

Multiple Choice

A shareholder bought 2,000 shares of Zee Corporation for $90,000 several years ago.When the stock is valued at $200,000, Zee redeems the shares in exchange for 6,000 shares of Yea Corporation stock and a $20,000 car not wanted by Yea.This transaction meets the requirements of § 368. Which of the following statements is true with regard to this transaction?

A) The shareholder has a realized gain of $130,000.
B) The shareholder has a postponed gain of $110,000.
C) The shareholder has a basis in the Yea stock of $90,000.
D) The shareholder has a recognized gain of $20,000.
E) All of the above statements are true.